Noone is dead :p.. Like I said Regardless. It's badass said. He already back then had planned out what the playstation was going to be like. IE not just a toy but a multimedia center in the center of the living room.

It's like a quote from a movie :p.. Badass.

YES! Since both Sony and Microsoft aren't really making money, they should both drop out and turn the market over to Nintendo, right?

2nd graph is pointless. It has nothing to do with Xbox or Xbox Live.

Xbox 360 and Xbox Live are in E&D

The E&D division is mainly Zune, Windows Mobile and Xbox (Live). There are things like office for Macs and headsets or keyboards, but those are tiny compared to the first three.

Zune is basically losing money since its introduction in 2006. Windows Mobile will see a massive and promising update soon with the release of WinMo 7. Until then it keeps on losing money and sucking R&D costs for WinMo 7. The division reports profits for every quarter since January 2008. How can this be the case? That is because of the Xbox 360 and Xbox Live. The Xbox 360 will break even very soon and make a nice little profit in the end. Sure the profit might not be as gigantic as the other divisions will report, but that is a comparison nobody in this industry could really win.

Sony has hardly recovered. They are still in last place by millions and they've been forced to cut their price 50% since launch just so people will buy their console. What other console has dropped 50% and removed features? Also, Lets not forget the PS3 will never be profitable.

MS did would it needed to do. The Xbox brand grew significantly, 360 will definitely be profitable if it hasn't been already, and it has dominated the PS3 in both hardware and overall software sales. Who predicted that would happen?

When the next gen rolls around Sony will still stuggle because MS is now a major competitor.

Why look at their Online Services Division when it includes neither Xbox 360 or Xbox Live?  It should have taken you all of 30 seconds to find that out so please stop wasting other posters time and do at least a little research next time.

I think this is exactly what will happen in the long run.

Nintendo is here for over 100 years, this is their market by nature.

As for Sony and Microsoft, both maybe could be better and more rich companies if they dropped of the home console gaming market.

Office for Mac alone is a huge money maker and I would say it is bigger than you believe. Sales of Office for Mac has been reported to be very big, around 20% of the Office packages sold in USA are Mac versions which alone would mean quite big revenues. And Office for Mac is definitely very profitable, no one can deny it. Not like it would make much difference but I wouldn't underestimate meaning of Office for Mac for the division.

Sold @ retail. The majority of money Microsoft makes on office is through the OEM channels. The EDD then pays a commission to the other parts of the division for the software they sell which effectively covers the cost of sale but little more. Oh and they haven't released a new version for a while so that % would be dropping until they release a MAC version of office 2010 which is typically a year after the PC version.

the Xbox was an strategic goal for Microsoft from the beginning meaning long term goal. They knew upfront for years they could be loosing money but if they pump enough money into it and shove it into gamers faces for long enough (because they have the money to do so) gamers will eventuallly take to it and make it a success. Which is looking like this is true, also remember years ago when Bill said something about them not giving up on the Xbox basically no matter what until it becomes of success for them? Also I think 2010 is going to be the year of the Xbox with the slim $150 xbox/ Halo Reach and Natal this is going to likely be the year the Xbox goes to a new level or at least one would think.

Oh and yeah that whole entertainment division stuff includes the zune and other crap so the xbox itself actually is better than that by itself

Then where do they include XBOX Live sales? E&D which is barely making profit?

Do they even include it at all?

If it's such a huge revenue stream then why woudn't they include it?