PlayStation has already reached a level where they can mostly ignore what Xbox does on hardware. Over 80 million vs like maybe 30 million. The market has shown it does not care about competition.This is why xbox needs to remain a competitor to playstation, despite not winning this generation. When there is no competition, the only ones that will suffer are consumers.
Many consumers seem to want a single box where they can have it all. PlayStation and PC are the closest to that.