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It's simple...

Microsoft doesn't give a damn about gaming. What they do care about however is media centers. Which they want to be living room PCs.

Made by them. So they have the same monopoly they have with regular PCs. If someone comes up with similar media PCs not them that don't use windows... it's a huge threat to their bread and butter.

Had Sony gone the Nintendo route of "All we care about is maing games."

I doubt microsoft would be in the industry right now.

Of course now that they're in again they want to make money... who doesn't?

Since Sony pushed them in they're going to try and make the best consoles and games they can... just if they don't finish first... they're still happy if Sony doesn't finish first.