Xbox hardware is doing just fine, not Sony fine but still fine, to top it off the hardware is what fuels the extremely profitable services like games and Xbox Live. So they aren't going anywhere anytime soon.

The real test for hardware will be the YoY numbers for the current quarter, and next quarter (to a much lesser extent).

Wow! That seems really strong for Microsoft

That's not how it works. On the bottom end, you have old X360 owners (and their subscriptions) leaving the market. On the front, you have new X1 owners entering the market. If your bottom end is much larger than your front, you are losing old money faster than gaining new money. If many X1/X360 owners are switching to X1X, that does not bring in any new money as well. So it probably is totally cool to have the fastest console in the world, but the bean counters might not be happy at all, and in any company the bean counters have the last word.

That is not how it works in large companies. XBox is just one segment of Microsoft. It does not matter that MS, as a whole, made 7bn. If a segment is not profitable within a company, the bean counters start getting loud (I have seen that live in two large companies I was a consultant). And once the bean counters get loud, the dough no longer rolls unopposed (just remember how studios got closed down left and right, exclusivity deals pretty much stopped,  once Nadello called the shots. Saved a lot of money).

Now we can all speculate whether the XBox segment has been profitable or not over a length of time. (By my observations and industry experience, all things considered, it lost a lot of money - and I mean a shitton of money). I wonder how you got to the conclusion that the XBox segment is profitable. What do you think MS lost on the Kinect2 alone? Did the Xbox segment ever pay the full price for using Azure, like every other customer? What about consistently selling its hardware $50-$100 below the price of its competitor - does that sound profitability?) So many questions, so few answers (none, actually). I hope I see the day when someone writes a book with all the numbers revealed (I know, never going to happen).

Actually I'm pretty sure they are far from losing a shitton of money like you assume, should not mix experiences and wishes :)
The Xbox brand is strong and not only the revenue from Live and the software is going up (and only up, and that's the biggest source of revenue...) but based on the support Microsoft is putting on their Xbox segment, I would say that it is more likely profitable than not...

Xbox was created inhouse under the MS brand. Its not a brand to be sold off like others seem to believe. Its the best avenue for Xbox Live which even today houses many millions of Live members. Thats the income and strength of the Xbox brand. Thats where the money is, not on Hardware units sold because again they lose money on hardware.

Yes they probaby lost money on Kinect 2

Yes they probably lost money on Xbox Units

However tell me this, how much money has MS been racking off Live members alone for the past 10+ years? The profits on Live that the Xbox devision has earned over the years has been the life force for Xbox. Thats not including the $500m Halo 5 earnt at launch. Etc.

That profit Live makes tends to be ignored in there convos. Lets look at the loses not the gains.

says the guy with that avatar....

Yah I admit... My Avatar has so much to do with you making up numbers and statement like "losing a shitton of money" :) 
If this is the only thing you can come up to back your claims... I'm kinda disapointed.

I mean, after all we got numbers from Microsoft quarter after quarter about how the Xbox brand and Live is doing in general but your 'observations and experiences' is telling you otherwise, right?

So I assumed that either this is coming from wishes or maybe a lack of understanding about revenues vs costs vs profits but in either way, this is coming out of your hat.