This is the response? Ugggg
Look at the actual numbers, NOT those in comparison to the Wii. Microsoft and Sony both are doing bad. And they have been doing bad for a couple years now. In fact, this is terrible for Sony as they need high hardware numbers to make back the money they lost.
The latter half of the year has been awful for hardware sales. So, no, just because they outsell Nintendo are they AOK.
Maybe you should actually do some research instead of sprouting the "I heard someone say" Because what you heard I think we all would like a nice link. It's already shone that Xbox Live brought in a billion in revenue for MS last report. That sure sounds like MS is having problems with the xbox platform bringing in the money.
The problem with your post is that you do not know the source and you do not know the meaning. It was an investor from Goldman Sachs that said that MS should concentrate on their core products instead of things outside of Windows. In other words, they state that MS should be like Oracle instead of in so many different markets. This was one investor and pretty much everyone in the industry thought he was on another planet. MS stocks barely even blip and no one who understand MS even cared.
The key is that MS has built the xbox brand from an upstart to a viable and profitable platform that they can now leverage with their other properties giving them more value. With Windows Phone 7 now having Xbox Live, this will increase the sales for that device as a gaming platform. It will also give the next Zune a nice kick as well and each platform can feed off the other and thus making each better than their individual parts.