Haha, if they are smart (gosh, I hope so) I don't think they will do consoles anytime soon.
Did anyone here in the 80s or 90s thought Sega would go down? No. But did they? Sadly yes. And guess what? They are working with Nintendo for WiiU to boost up sales and bring back the Blue Hedgehog to its rightful place to compete friendly match with the mustachioed plumber. Will anyone in the random public think the gaming of Microsoft will end? No. Does it look like it will? Most likely.