Best case, the hardware designed for Azure servers is also ideal for consoles. If true, it needn't be specifically designed for servers - the perfect console design would naturally be a perfect fit for servers. Worst case, in designing a box that works ideally as a server box, it doesn't work well as a console box. Like designing a car base designed to be both an SUV and a sports car given a different shell.
I'm not saying that's a perfect analogy, as computing is different and it's possible that the computing structures used for servers are good for consoles too. I'm also not saying it's bad business for MS. The quality of the end results will show whether it's a comprimise for console owners who left playing second fiddle to the money mainstream of cloud services, or if MS do something clever and manage to bring a synergy across platforms that works to console owners' advantage.
The important point here in this hardware predicition thread is we have MS telling us they are considering Scarlet's HW use in servers as well as consoles. By considering what a server needs vresus a console, we can shift our expectations of Scarlet. Does that point to more CPU power than usual for a console? Is CPU totally out of fashion in servers? What about RAM and BW, typically significant components in servers - will Scarlet support wider busses and more RAM in different configurations to the console? Could that point to multiple hardware configs?
There's really plenty here to discuss of hardware merit instead of talking about business strategies and whether console gamers are being sidelined or not.