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I certainly think Microsoft is futureproofing their gaming division. Xbox, PCs, and Windows Phone all run on essentially the same operating system. The hardware architecture of Xbox is very similar to that of PCs. Now Microsoft is porting several of their Xbox exclusives to PC.

However, Pachter basically agreeing with me makes me second guess that conclusion. Statements like "your phone will be powerful enough to power any game" sound pretty silly and have some problems.

I don't think Xbox is going away, it's a strong brand. And that's all it will be in a few years, a brand.