Hardly. I think they are just moving toward the handheld market, as since there are already so many out there, the technology is in a pretty good place, so they can mass produce handheld's like the ROC Xbox consoles and hike the prices up 300%. Sony will follow suit. It's no panic mode or last gasp at trying to reclaim the console market. It's simply business.
This is of course, just another step at killing off physical games, which is almost fully here anyhow.
Almost all games are digital now, and if they get their way, along with Sony and Nintendo, even digital downloads will vanish from their landscapes, and it'll all be streaming.
VALVe's Gabebox
(yes going to call it that forever) will be the last bastion of owning games along with GOG
And about Xbox exclusives on PlayStation, it'll go the other way too...
There will be PS games on Xbox as well. It's all about money in the end, and it makes more sense business wise to split profits of dying or failing franchises that are not raking in much, if any money anymore.