I don't think so. They're making money hand over fist selling controllers and XBL subscriptions, and the console is selling reasonably well. It is just slightly behind 360 sales at this point. Software sales are fine. The XB division has made them tons of money over the years, and continues to be profitable most of the time.
With that said, I think they will continue to merge PC and console gaming. Hopefully, their strategy will work better than Valve's did. I don't quite understand what their strategy is. I just assume that they have one.








