What I saw in the analysis is things that didn't differentiate the videogame division. From what I was able to tell by digging a bit deeper, is that Microsoft is throwing money down a rat hole trying to promote Bing to go against Google. They are advertising it, and doing deals that cost them money. Bing costs them more money than it brings in, because of they money they are spending on marketing.
Anyhow, if someone can break out the actual revenues generated from Live out of this, it would be beneficial.