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You need to look at the Wii U Slimebeast.

You cant just think MS will let Nintendo have a free pass in America with Wii U. They cant afford to let it take off so easily and they cant afford to let 360 sales stagnate while the competition moves forward.

Is profiting good? Yeah. Brilliant.

Is staying relevant good? Yeah. Brilliant.

My point is, Microsoft still need to be competing while profiting at the same time. Look what happened to the Wii. It stagnated. People lost interest to the point that it couldnt be revived (albeit for different reasons).