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http://www.destructoid.com/microsoft-plans-slow-steady-takeover-xbox-360-declared-stepping-stone--48940.phtml

 "Is this just a cynical way of Microsoft saying it doesn't care how well the Nintendo Wii is doing now that it's kicking everyone's arse, or is there truth in Thompson's words?"

I guess this is the reason Microsoft doesn't really care about losing money thus far.