Here's a closer look at their Online Services just for fun.

Source: http://www.businessinsider.com

Entertainment and devices aren't just Xbox. I'm sure it includes Zune and all the other gizmo's.

Doesn't look like Microsoft is making much from Xbox at all...or am I reading the chart wrong O_O

The xbox has been and always will be a means an end. MS doesn't want Sony having a PC replacement in the living room that is independent of the windows platform.

so why they spend so much money in buying third-party timed exclusives in japan if they don 't get money ?

This.

what wud it have cost them,come millions?

how much will it cost them if people stopped using windows at home

I would point to the end of the chart showing that E&D is profitible right now, since we're pretty damned certain the Zune and WinMo are losing money, xbox must be making some good profits to make up for those losses and push them into the black. If I'm reading the chart right at least $100 million in profits in Dec '09, why would they throw that away now?

Right now MS Entertainment division is in the green making close to 1-200 mil per quarter. Many Company's take losses when pushing specific products.

The PS3 has/had cost Sony Billions in losses, until recently, same with MS. Lucky for all us gamers, both console makers have started seeing profits recently.

If our console manufactures always took the "is it worth it" route, we may not be experiencing the amazing games this generation is pumping out.

Short answer from a gamer.......yes it is worth it. With the success the 360 has seen this generation I am confident that MS answer is also (Yes).

Keyboards, mice, joysticks and gamepads, embedded windows, office for mac... all stuff that makes good money.

(source: http://www.microsoft.com/presspass/exec/rbach/ )