This isn't a console 'war'
A 'war' would imply a battle involving participants capable of fighting each other.
What MSFT have done to themselves is so hopelessly silly, that can't even assert to be adequately armed. Sony have come along, done the splits in front of them, and issued one (1) Jonny Cage-style bruiser right in the balls.
The big question is whether MSFT will have the humility to back-track and save their new console. Sadly, I'm doubting it - like most corporate projects that are pets of people in power, the internal politics and / or policy is enough to keep dumb ideas proliferating, just so long as the powers-that-be are kept happy. It does make me wonder how many engineering voices within MSFT screamed 'for the love of God, NO!' regarding the draconian DRM, but were silenced by corporate line-towing.
It'll be costly for MSFT, and the consumer - including for me, someone who jumped in with the Xbox very, very early on. It seems those days of just popping Halo in the drive and playing are getting away from us, and that is very sad. Indeed, it's the raison d'etre for a console, isn't it?