Microsoft had been trying to do this with both the Xbox and Xbox 360 with no takers.  I think their decision to become a hardware and services company meant that they decided to stop trying to get hardware manufacturers to create products around their software, and just start creating hardware products that use their software.

Why is domination important exactly? Sure it's nice to be on top but certainly not crucial.

source?

Maybe it's a secret desire of his :P

On topic, Microsoft is in this for long haul. I expect their marketshare to shrink compared to what it was during the 360 era. But it's still anyone's game for the gen after that. So we'll see.

Because Microsoft was a monopolistic entity and wants to be the end all be all for everyone. AT&T was the same way. Ever since Apple got big again in the early 2000's with the IPod and slowly with the Mac after Napsters issues it started getting to them and Apple still is slowly eating away at their marketshare. Slowly but surely. Sure they still sell a lot especially since their operating system comes default, but if someone came in with a better operating system than Windows for PC MS and it was business and family approved by the media MS would be in for a rough show. Look at how people percieve Apple in the states. Very positive. If they cannot dominate their competition they leave and this is coming from a loyal Zune owner. After they dropped Zune I switched back to Apple even though they dont have the radio like the Zune did, they now have Pandora and other stations, so I am happy in that respect.

My mistake. For the most part it wasn't. MS went into their cash reserves to keep Zune afloat. They tried very hard to divert peoples attention away from Apple, but not hard enough. Their efforts were good enough for me after owning two versions of the Zune truthfully speaking. They did say they wouldn't drop the Zune branding though which I had invested in.

abot the main question: I hope so, mainly because I want rare's franchises back on nintendo.

"squeeze by wii for second" you realize wii is first and 360 is third,right? it has to squeeze through ps3 to be second.

and even if 360 is "profitable" now, in overall profits it isn't. MS didn't profit a penny with xbox, only lost billions, the same for the 360. so it's still a long way to cover the xbox brand costs.

that applies to all companies, doesn't it? and it's too soon to say who's on top this gen.

Already in 2009, Microsoft was reporting the Zune profits were tumbling (http://www.tomsguide.com/us/Zune-Microsoft-Earnings,news-3355.html). Things didn't really pick up for the Zune from that point on either and with the rise of smartphones (which many use to listen to music), I'm pretty sure the decision to discontinue the product had everything to do with Zune not being profitable anymore or being headed in that direction.

The situation with consoles is much different.

Yes, I conceded that point to Dirty. I didn't stop Microsoft from burning through cash reserves to keep it going.