Microsoft has stated many times they made the XBOX initially just to 'put their foot in the door of console gaming'. Obviously, after they got that foot jammed in the door, they've had to spend a few billion dollars to try to get it unstuck, but it has worked. They've established their 'name' as one of the three major gaming producers.
And as long as they're breaking even, Microsoft will probably keep that going. Because the recognition of your name being popular with an entirely different (and quote unquote trendy) product is going to help your company down the line. right now Microsoft is doing quite well with a popular new model of Windows and yearly releases of things such as Office. But they can't just coast by with the same products every year. The key to a successful company is market expansion, and Microsoft has gotten by far too long without doing much of it. That's why they're pushing right now to try to get into much of the same market Sony and Apple has.











