Do you think it possible that if not will not be successful, Microsoft will get out of the console race?

No. They will try again next gen.

They said they see it as something that will give the Xbox 360 another 5 years in the market and will continue in the next generation of consoles with their next console

Let say Natal fails, what do you think they will do? how will they keep selling the Xbox 360? The sales now are obviously great, but how could they keep them? can the Xbox 360 really live beyond it 5th year?

Yes, if natal sales fail, the 360 sales will not dip much lower than now over the next few years.

If the Xbox 360 sales starts falling down, do you think they'll just launch their next console to get the advantage like they did in this generation?

I have mixed feeling about this, I just bought my first 360 after being able to use my brothers for two years. So I really would like to have this gen last a little longer so there are more games for the 360, on the flip side, I would love to see what the next console will be.

Most importantly - What will they do if Sony's next console is successful like the PS2 as opposed to the first Xbox? Will they keep their console alive until the generation after? Is Xbox and Microsoft Games Studios really that important to Microsoft from a financial standpoint to the point where if it fails so hard like the first 2 years of the PS3, they will still keep it?

Who cares, as long as they make a profit I think they will stick with it and try again next gen. MS looks at the long term as well as the short, they are very business savy.  

I think the same way, that's why I want Sony gone.

Do you think it possible that if not will not be successful, Microsoft will get out of the console race?

They said they see it as something that will give the Xbox 360 another 5 years in the market and will continue in the next generation of consoles with their next console

Let say Natal fails, what do you think they will do? how will they keep selling the Xbox 360? The sales now are obviously great, but how could they keep them? can the Xbox 360 really live beyond it 5th year?

If the Xbox 360 sales starts falling down, do you think they'll just launch their next console to get the advantage like they did in this generation?

Most importantly - What will they do if Sony's next console is successful like the PS2 as opposed to the first Xbox? Will they keep their console alive until the generation after? Is Xbox and Microsoft Games Studios really that important to Microsoft from a financial standpoint to the point where if it fails so hard like the first 2 years of the PS3, they will still keep it?