It's entirely possible Microsoft doesn't care whether they turn much profit, so long as they're generating a new revenue stream, but they don't want to be bleeding either, though compared to Windows it may be moot anyway because $1 billion annually on $46 billion in sales with $36 billion in profits isn't much. They aren't being aggressive enough with 360 to make me think they don't care, though. Microsoft leapfrogged a 20 year veteran and put another out of the hardware business with its first entrant, while building one of the strongest stables of internal development talent (and growing rapidly), a generation headstart on building the largest online gaming presence, and significant third party support, including a vice grip on many of the previous PC developers who didn't want to venture into the console market pre-Xbox. Not a bad start for something that's worthless. The ironic thing is that Sony's the one that doubled the size of the market in a decade, yet for some reason, Nintendo's being credited with the "genius strategy" of going after new gamers (as if that's not something they do all the time considering their market outgrows them and they have to seek fresh new faces on a regular basis, but whatever).
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