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montrealsoon said:
Dolla Dolla Said:

>>Err ... Despite MS's substantial losses in their entertainment division, they do not need profitability as bad as Sony does. Right now, the other divisions of both companies are making all the profit. And, last I checked, Microsoft makes a megaton more cash than Sony. Believe me, if any shareholders are sweating bullets, it'd be Sony's after that 2 billion dollar loss.<<

Sorry, I did not make my point well. My perspective is that XBOX only exists because of a decision to keep it alive. Sega Dreamcast losses were minor compared to XBOX losses, and look how quickly it was killed. Given it is a MS executive decision to keep the XBOX alive (and hopefully have it thrive), they could just as easily can it. Be aware that corporate financing is not like household financing. Even if the bottom line is positive, it doesn't mean that all losses can be held indefinitely. One could easily argue all those billions lost would have been better spent trying to counter all the strides GOOGLE has made in the past decade, or even be paid out as dividends.

I am not saying I am necessarily correct here, but mine is definitely a valid point of view.

Ah, I see. I agree, Microsoft could just as easily say, "Ya know, X-box isn't as successful a venture as we would've liked. Let's cut it. All in favor?"

But, they are in this business for more than just a gaming console. They are trying to take over the living room, integrating gaming, computing, tv, etc, which is why I think they won't just call it quits. Just like PS3 sneaking Blu-ray into the PS3, Microsoft is doing similar strides with Games for Windows/Digital distribution of TV shows and movies. There's more to both of these companies than winning the console race.