The Xbox is MS way for them to stay in the living room once we move on from monitors to purely our tv sets. Very clever. Plus they are profiting!, might not be worth much overall but profit is profit at the end of the day

Yeah it makes sure they are dominant over Sony.

As others have said, it's not just XBox in that category but it should be obvious it's XBox that's putting that category as a whole in the red. Others have also said their console is just a means to an end. True. But I find it funny that everyone thinks because that's their plan, and they went ahead with it, that it was  a good idea for their bottom line. I believe in the end, the whole XBox thing was a waste of time.

They were afraid of Sony's PS line? Didn't want an all in one system with Sony's name in your home? Has any of the gloom and doom, Sony will run our living rooms, come to pass? No. Most people use other devices to do what PS3 and 360 do. Devices that have nothing to do with Windows. So while I'm no billionaire whiz kid, I still believe MS missed the target. Focused on Sony or fears people would use that system for everything, they missed the real threat. They've watched their big guns like Office take hits, and it's not because of Sony. People are getting similar programs, that will read Office files, elsewhere. And for free no less. They've watched their profits dwindle as people are getting similar products, 'over the air' instead of paying MS' premium price. The real threat was Google. And they ignored them, and went after Sony? Mistake.

So you tell me, if XBox was a good idea? Makes no profit. Supposed to be a trojan horse to shoehorn even more MS into your home because all in one consoles were going to run your living room! Wait, that didn't happen. So we have a product in the red, and losses in other areas for MS because they went after the wrong company.

This only shows that what they are doing is a horrible idea when it comes to making games on the 360 and not releasing them on Windows.

There is an ever larger crowd that only gets a Windows because of games. If they remove that incentive, then they are going to need a LOT of benefits. If they lose even just 1% of profit from Windows/Office because of people switching to Macs, they'd need something like a 50% gain in profits of the Xbox. Horrible business plan all in all.

In their january 2010 results the gaming division (or entertainments as you have called it) saw it's profits triple. Key word being "profits".

Some of you are talking like it is running at a loss or something.

360 is and has been making MS a lot of money for a longtime now. The other devices in the group have obviously held those numbers down a bit.

I am sure all the companies would love to be making the kind of $$$ Microsoft is making on the 360 right about now.

If they continue with recent trends, then yes.

As ever when I look at MS as a whole I find myself thinking that if Sony agreed to use MS DirectX standards (amongst others) and allow MS to provide the OS for its Playstation consoles the Xbox wouldn't even exist as a physical consoles.

How is it obvious? When you do the math on the % given you see that the Xbox 360 accounts for a large proportion of the revenue but not the cost in the division. The only thing obvious is that the picture is complicated because they never explicitly state how the Xbox 360 is doing. When you read between the lines on their financial reports you see that the % of Xbox 360 revenue out of the entire EDD revenue structure is high whereas I struggle to account an equal quantity of expenditure directly towards the Xbox 360 itself.

Show me where a they are apparanly losing a bucket load of money? They don't have a large 1st party, they haven't cut the price significantly since release and they have lucrative 3rd party royalties and Xbox Live revenues on hardware which as stated 18 months ago breaks even with accessories for the Arcade SKU.

Holy fucking amazing quote and prediction on Kens part. He may be crazy, crazy awesome. 

I'm wondering what "Krazy" Ken been up to lately. The last I heard, he was working on the PS5, with the PS4 already wrapped up.