Go buy a $500 game console, a $400+ Surface, just to stream TV
Do you really think all of these people that want to watch TV/stream it also want to buy a $500 gaming console?
I know being ignorant isn't a choice you make as much as it is a disability you seem to have been born with but so I will cut you some slack but you act as if that's the only sole purpose of those devices.
It's an added benefit that allows you to get more out of the $400 surface and the $500 Xbone. The more features you get out of a device then the more the price point becomes easier to stomach.
MS allowing you to control your whole life through their software on all devices, which includes the Xbone, is pretty damn cool and that is where they are heading. This is just the first step into that.
Sony isn't even their competition in this regard because Sony isn't a software company as proven by their past failures with horrible UIs and quite frankly Sony doesn't have the money to build the infrastructure (state of the are servers/cloud) that MS has already built and is continuing to improve.
Gooogle is who MS is trying to beat to be your go to for everything. It's why Bill Gates himself said yesterday that cloud service is their biggest focus right now for interconnectivity and what all that will offer in a stream lined world that all of your devices will connect to.
Amazon is also a slight threat to MS for this as well IMO. As they increase their servers/cloud to businesses like they have the past few years it only makes sense that at some point they will focus this more on the individual consumer as well. Don't doubt for a second that Amazon isn't working on more hardware than just the Kindle.