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MS seems to intend to give up on gaming :
- they cut jobs in gaming divisions
- they're closing their only few studios
- they don't announce any exclusive anymore
- they don't buy any timed exclusive anymore

I think they're right since there's no way their lineup could compete with the PS3 lineup anyway considering their lack of studios.

With a big install base, 360 should end its life well anyway, since even with no game there will be many people buying the cheapest console.