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Microsoft seems to have this knack of coming late to markets (game, phone, tablet), and as a result, generally have to spend more to muscle a foothold in an already established industry. However, they have the advantage of integration of these markets with their dominant home PC platform, so long as the trend doesn't start moving too quickly towards other markets...

Xbox is doing fine. Microsoft are in it for the long run, because they see these 3 markets as where technology is heading more towards. They're not going to say "Well we've spent several years and only just started making a profit now, but it's not as fast as expected so we're shutting it down". No sane businessman that I know of does that.