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What part of this OP is everyone disagreeing with?
He says MS makes very little on xbox.
http://www.microsoft.com/investor/EarningsAndFinancials/Earnings/PressReleaseAndWebcast/FY12/Q4/default.aspx
MS made a 350m profit for the 12 months ending june 30 2012.
Their total annual profit is 16B$.

It's like 2% of all income.
OP doesn't actually say anything wrong.

They did enter to get rid of Sony, and they spent a lot doing it, and don't make a whole lot compared to what the company makes. Don't know why everyone is so upset.