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Mr Puggsly said:

I think Xbox is integral to MS because its one of few things they have that appeals to younger consumers.

It can also be used as a vehicle to push other products. Such as Skype, MS's streaming music service, MS's TV programs, etc.

100% agree, it's very silly to say Xbox is any less integral to Microsoft than Playstation would be for Sony.

The only one of the big 3 that actually can't live without it's gaming segment is off course Nintendo, for Microsoft and Sony they're just integral to selling their other services/appealing to more markets.