PC gaming (and cheaper alternatives like the Atari ecosystem) existed, as did basic handheld devices like the G&W and Microvision. Having viable alternatives is great and I like that this current generation is finally giving consumers real, meaningful choices to make when it comes to system ownership.One console hardware standard where the competition in the market is on software would be ideal. PC would still exist as a 'competitor'. Handheld/mobile would still exist. Cloud would still exist. These were not viable alternatives during the NES days.
As it stands Xbox doesn't need to exist and the market would be demonstrably better if they went 3rd party.