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Well, MS has been losing profits for a while, so I don't think that if MS had a few more quarters of neg profits, that it would make them prematurely pull out of the gaming market. Now that they are actually making a profit anyway, they should be able to safely make a profit as time goes on, as its just going to get easier and easier for them; keep in mind that as the chips on the 36o get smaller and smaller, they'll have fewer instances of console RROD which has been horrible for their profits, so somewhat better times are ahead for MS.

Even w/ the PS3 doing ever better, it still probably won't be as bad as every 360 burning up.