tongue_of_colicab
Veteran
On the flip side, what are they going to do? Bundle Lunix instead? If MS wants to sell XBox as a cheap PC, they probably could get away with it. I doubt it canablises the market much too, because an XBOx doesn't replace a laptop which is what most low-end consumers want, and of course doesn't tap the high end. I think it'd mostly be a secondary PC, with maybe some low-end losses for students.
So why bother? With no significant potential user base it doesn't make financial sense to spend resources on something that already works on tons of other devices. All MS will be doing is pissing off OEMs that are already surviving on tiny margins.