if microsoft fail to make a profit,will they exit?

[NJ5]

Doesn't make sense... No matter what happens, they've enhanced their Xbox brandname (even with the RROD episode), and it would be financially stupid to not use it again.

That would only be true if the losses were really massive, but right now they can control their losses since they don't need to be aggressive in terms of pricing. They've been making profit in every quarter for quite a while. Even if they have a net loss at the end, it will still be worth it to do a better try next time.