But now that the there's nearly a PC in every home the lines have become blurred
Not so blurred that your state-of-the-art "gaming" graphics chip isn't essentially a workstation chip that failed quality testing.
the entertainment market is big business with lots of profit
Yes. Particularly since you can now charge money, for what you used to have to throw away.
thats one of the reseaons why Microsoft developed the X-BOX
No actually. The reason Microsoft developed the XBox was because WebTV wasn't doing too hot. Set top boxes did not become the hot item everyone thought they would be, so they reevaluated their "Microsoft in every home" strategy to include video game consoles.
and those of use that are old enough will remeber that Microsoft used to produce games for the old home computers (Commoder/Sinclair etc) as well some home computer O/S's.
Boy are you ever wrong. I'm 32 and the only thing I remember Microsoft releasing "back then" were poor basic interpreters (originally for the Altair 8800).
What O\S would be dominate now.
Well I'd like to say Amiga Workbench, but the fact of the matter is that IBM totally dominated the market at that time, and if it hadn't been for Microsoft flooding the market with inexpensive, sub-standard software, designed not to work with anything else (a luxury IBM could not afford) everyone would be using OS/2 - or rather one of its successors.
it's just fate the IBM-PC clones were cheaper.
No actually. It's because the US government intervened and IBM, fearing another anti-trust lawsuit, chose not to go after the producers who were intentionally and illegally infringing on their patents.
(Apple hardware is too expensive and so buiseness will always go for the option that will increase their profit margin).
Your assertion about what constitutes profit margins, is somewhat flawed. Businesses will generally go with the solution that gives the best benefit/cost ratio (low cost, high benefits). What platform or vendor that happens to be is individual. In my experience the focus is more on productivity and interoperability, rather than brand loyalty - after all, you don't have to waste too many hours in front of a computer, before the cost of the computer is dwarfed by the cost of the person using it.
Not the hardware only the specifications are open and standard.
No they aren't. Almost every specification maintained by a standards governing body (be it PCI, USB, whatever) is exclusive to members only (thus not open), and also different manufacturers use different technology (HyperTransport, PCI Express, QuickPath, etc.) so it's hardly a standard by any stretch of the word.
Microsoft Windows is on lets say 95% of all computers
There's no arguing with make-believe numbers. 95% of the worlds "computers" are embedded systems, and none of them run Windows at all - even if you wanted to. Ignoring that "Microsoft Windows" is no more a concise platform than "Linux". Or "Posix". Or "DOS". I think it would be much fairer to say that about 40% of the installed desktop computers are running a Microsoft OS that has stable and available drivers, for any significantly large percentage of all conceivable hardware.