Eehhh, I wouldn't entirely agree that consoles are competing with PCs, exactly, particularly in the same way they are with other consoles. Bit more complicated than that, given the amount of overlap involved between the markets. They want more to increase the overlap rather than push PCs out, and trying to out compete them latter hardware wise isn't likely to really help that much.
Honestly don't really expect their way forward so far as competitiveness goes will be hardware advantages, at least performance wise, though. Meeting a minimum'll still be important, but what'll win things is more ease of use (UI, integrated and painless shops, ergonomics, maintenance related stuff, etc.) and mobility. Consoles don't really have reason to be too worried about PCs so far as future sales go,* and the same's fairly true in reverse. They've both got a much bigger worry building up steam, heh, particularly as more and more people switch partially or fully to mobiles and tablets and whatnot.
... though again, I wouldn't be comfortable claiming full backwards compatibility/emulator implementation would be gaining the console makers money or opportunities. There's fairly significant fiscal risks involved with that, and a questionable amount of return from it. Both the possibility of the emulators getting loose, and the increase of people playing older (cheaper, possibly disconnected from in-production franchises) games rather than newer ones makes the proposition somewhat dubious. The market for the older stuff would have to be a lot larger than it seems to be. It's definitely something I'd be happy about (I'm not saying it's because of those emulators shortly getting loose, but...), but I can see a number of reasons why console makers haven't been going that direction. They're mostly pretty good ones from their perspective, imo.
*Most of what's been getting the PC somewhat of an advantage in recent years has nothing to do with hardware and everything to do with differences in pricing and distribution, which consoles are slowly catching up on near as I can recall.