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Carl2291 said:

http://www.gamesonsmash.com/?p=8164

The question posed, “will Microsoft introduce a new console next generation” stems from many devastating articles I’ve read concerning the Xbox division.  Most recently a brief article by Ricardo Barrier indicating the loss of $130 million in Q4 with the recent posts of their numbers, and an article  that was brought to my attention by blade206 that was posted two months ago by  Roy Schestowitz stating how Microsoft is still operating at a loss.

 

The whole premise of your post is based on the assumption that Xbox is losing money.  Microsoft does not have an "Xbox division" nor do they even have a "games division".  They have an "Entertainment and Devices" division that includes Xbox, Zune, Windows Mobie, Media Center, Surface - and many more.  More than one of those are (presumably) unprofitable for various reasons. Zune not competing very well with iPod, Windows Mobile getting crushed by iPhone, Surface has got to be a loss-center, even if it's a pretty fascinating idea. Xbox, by all rights, is the most successful part of EDD in terms of mindshare.  Media Center (probably) makes money if only because it ships in Windows, but doesn't really have a userbase comparable to Xbox.  As to revenue/profit of Xbox or Gaming specifically - we will never know, because this information simply is not provided publicly.