How exactly are they going to "kill" Playstation when its already strongly hinted that they are doing both a console and a handheld next gen ?
The whole digital locker strategy also hinges on having a large slate of first party product, so the need for output i.e. games, actually increases.
Xbox is basically dead as a brand, and once they start badging everything as an Xbox its identity will be gone and the coffin-lid firmly hammered down.
For it to make a comeback at this stage, would be the most remarkable turnabout of fortunes in gaming history, and I simply do not see MS being able to do it - they just don't have the creativity to pull that sort of rabbit out of a hat.
Playstation as a hardware brand isn't going anywhere, because frankly there's literally nowhere else better to sell their software and services from. In fact I suspect if anything what this more content focussed approach is going to lead to, is more of their back catalogue being brought back. Will they continue launching stuff on PC, and to a lesser degree other platforms... sure. But here's the thing, what other platforms are actually worth selling on? Nintendo with their solid but extremely loyal and partisan user-base? Or the smouldering remains of Xbox? Neither are particularly appealing,
The only thing I'd say categorically to be on the chopping block is something like PSVR2. That's the sort of hardware that's going away.
The big change is going to be a further emphasis on Transmedia. Movies, TV, Games, Music all drawing in and feeding from their IP pool.
The people chicken-littleing over this are just showing themselves up as fools.