If Nintendo has taught us anything, it's that you do not have to necessarily be the victor in the console war to establish and maintain healthy profits.
As many have mentioned, the Xbox has become a formidable brand. Microsoft will continue to expand the brand and reap the benefits. Microsoft has the resources and vision to reap the long-term benefits of the Xbox brand.
I honestly would be more concerned for Sony than Microsoft. Microsoft is a very financially sound company and considering this is only its second generation in the home console market, its made amazing contributions to the industry. Sony makes great hardware, but Microsoft continues to expand its horizons and provide innovative functionality to the 360 through the value of its software and online services.
Sony is in third place and losing billions. You would think another company would be the topic of this discussion.
I'm not a fanboy, I just try to tip the balance in favor of logic and common sense.
