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Well they invested a lot of money with Kinect 2.0.

If kinect is not bundled with Xone,it will not sell as much as they projected.(and invested for)

Plus,their Titanfall moneyhat+marketing+free bundle must have cost a lot for MS.

Plus²,the console by itself is not selling like they wished.

So 1 billion loss for Xbox division actually make sense.

On the other hand,it's michael pacter so MS probably earned 1 billion dolars. ;)