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makes no sense, yes microsoft has to fight harder to stay where they are but i would think the xbox 360 was already profitable if you take out all the zune and other financial flops of the devision. then there was the rrod which burned a lot of money and you simply have to put that in consideration because otherwise you would also have to say to a car company that it should stop producing cars because it made a loss with a car model because of some callbacks...

and nobody should forget one of the most important things, the xbox brand will be used now to try to get some other stuff working like xbox music and the xbox brand will make it much easier for microsoft to get a foot in the living room of many people with whatever they plan in the future.

so, as long as they are at least little bit in the profit with the xbox right now i see no reason why they should stop with this just because it has a smaller margin as office or windows and just because it burned a lot of money in the past...