There's no way I'd count MS out or under-estimate them. This is the company that reached parity with the market dominator last generation -- stole a huge chunk of their market and cut their smug dominance right out from under them (with cooperation from Sony, of course). MS has made some blunders, but they've also shown that they are pretty quick to correct course when they need to. And let's not forget their deep, deep pockets. They can shovel money at the problem in a way Sony can never do. They also seem to have their pulse on the dudebro online shooter crowd (Gears, Halo, Titanfall), which is a powerful sales advantage, once the more casual gamers get plugged in. So I wouldn't underestimate them at all. They are a powerful competitor and will not sit by idly by while Sony runs away with the crown.
Maybe the title of the video is more of a "time's up" for Xbox one in its current form. The one that is $100 more expensive and forces you to have Kinect.
The big long term problem for MS though will be game performance. Even if that match Sony on price, which I doubt will ever happen because Sony will just drop their's, MS is still stuck with a Radeon 7790 and DDR3 in their box while their competition has a Radeon 7860 and GDDR5 memory.