[1] https://www.businessinsider.fr/us/microsoft-only-using-xbox-...
They switched a generation ago to commodity architectures (likely owing, in large part, to the very slow developer uptake of Sony's exotic Cell processor). Playstation and Xbox have both been on x86 for the better part of a decade already.
But this does not make them PCs any more than Nintendo going ARM makes the Switch an Android phone. The experience of owning, using, and developing for a console remains entirely different from that of a PC, even if the underlying hardware has more in common than it did in previous generations. It's not "giving up on the market" at all.
This is sort of disappointing from a technology nerdery perspective, but after years of game developers struggling with bespoke weirdness like the PS3 Cell chip, I imagine they're welcoming the change. It also makes it much easier to handle backwards-compatibility, which most gamers treat as non-negotiable these days.
In a way yes. Last generation you had "1/2 step" consoles, The PS4Pro and Xbox One X, which were mid generation upgrades. This generation is shifting even further towards bringing console gaming to what PC gaming is via Windows and Steam.
I have PC Games I own on steam, and as upgrade my PC components over time, I still own and play my library of steam based games. There is no concept of "backwards compatibility."
The belief is this is the last hard console generation, and instead overtime, their will be revisions to hardware that take advantage of leaps in technology.
As games come out that require more powerful hardware, those with "Xbox Series X" will have to opt to play games via streaming service.
So you can think of Xbox being the brand of a PC-like gaming experience created wholly by Microsoft. That is what their branding is trying to evoke.
Also, this was around the time Microsoft got sued by Sky and had to change the name of SkyDrive to OneDrive. So there was definately a 'One' branding scheme going on. You also google his 'One Microsoft' reorganization plan and see a clear theme.
Looking at how they've mentioned that owners of their new first party titles on xbox one will have an upgraded/enhanced release available at no cost on their new console - I suspect this is to blur the lines between the two series.