Xbox needs the financial support and stability of a larger corporation to survive. If it went wholly stand alone it would fare no better than Sega in its final years in the hardware business. If it was a wholly owned subsidiary then MS as the shareholder could still provide financial backing but the business would soon be exposed if it wasn't able to be profitable. It seems MS strategy is to be in the hardware game across product classes it sees as strategically important, so the essential question is whether consoles are still strategically important. The argument in favour of consoles being strategically important is not as strong as it was in the 6th gen and for about the first half of the 7th gen.
“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell
"When the power of love overcomes the love of power, the world will know peace."
Jimi Hendrix
