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DirtyP2002 said:

..And their keyboard and mice production is VERY small and not so profitable. I read they are running at a loss, too. ..

Dude, time for reality check. The PC peripheral market is about 40% Logitech, 20% MS, 40% Asians. Check Logitech's annual reports to see if they ever lost money. Then add the fact that the XBox peripheral market is entirely MS (and grossly profitable), and the fact that Logitech has much higher personnel costs, and you'll see that MS's profits is roughly similar to Logitech in the peripheral market. Peripherals, Software and particularly XBox Live is what keeps that MS division alive and offset the losses in hardware costs.