On the other hand, if the tech changes aren't significant and revolutionary, as they have been in prior cycles, then having a steadier stream of revenues come in from iterative consoles rather than the peaks and valleys of the traditional console model makes the consoles far less risky financially.
With the traditional model, Microsoft's botched Xbox One launch could cost them for 5-7 years, paying the opportunity cost price of not having launched well. With an iterative model, if one iteration doesn't sell well, they can quickly address the issues and deliver a more appealing box. Revenues are more steady, mistakes are more easily and rapidly fixed.
Same thing as in games now. Without the service model, a game would have one shot at really selling a bunch, launch. Now, games can continue generating significant revenue for years.
It's far less risky this way. And if people go to PC, that's fine for them too. People will be playing on Windows 10, and hopefully (in their minds) using the Store, and generating MAUs.