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Microsoft does not need to profit from its game division. It makes so much money from having exclusive rights on Windows OS on all PC's sold each year. MS console gaming is a strategy to make PC gaming mainstream. Consoles are becoming more like PC's each generation and are costing more to produce.

GT5 has been delayed until late 2008 and early 2009 world wide. Any surprises?
Kill Zone 2 - I assume it will be delayed and it is only 50% complete. So will appear late this year or early next year.
PS3 = Promises you the world. So many delays. 3 years time I will buy one for $149 US with 500 games to chose from.