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FloatingWaffles said:

I would understand that if Microsoft didn't care/have faith in the future of Xbox, but why wouldn't they? It's still profitable and still has a strong future.

As far as anyone can guess, Xbox isn't profitable - the division it's in is, but that is something else.

That isn't the main problem though. The real issue is that to management and stockholders, even if Xbox was able to turn a small profit, the resources spent getting there could be used in other places for much higher gains - especially now that "the living room" no longer has the importance it seemed to have when MS started the Xbox project.