Hopefully a desperate Micosoft can be a great Microsoft. I am eager to hear what the conversations are like at the Xbox division offices right now. To me, as someone who primarily owns more games on his xbox one right now, this is good news.
I think all this is win win for the console stuff going on, well, except Nintendo.
The conversations at MSFT are most likely:
"Let's put out a press release saying we are investing another $500 million for our commitment to the product - this is a marketing issue and we have to responnd"
"Let's call Goldman's TMT guys and see if they can find a buyer or recommend the best time to spin off the unit and take as much cash as we can off the table"'
"Let's put that cash into Surface Pro 5 with 1.2 Teraflops and compatibility with all PC games and get Xbox One users to transition in a few years"
"Let's save one platform (Windows) that makes money and consolidate our users there, rather than dividing our users across two"
Microsoft doesn't innovate out of situations, it buys its way out or kills the whole project altogether.
There is tremendous pressure on the new CEO to make a decisive commitment to Windows and either double-down on saving it and perhaps forcing Xbox users onto Surface - or going all-in on Enterprise.
In either case the Xbox experiment doesn't have a high probability of surviving past this generation.