No, money is to be made with Xbox by software, accessories, and Live.

Nintendo didn't bail after Wii U so I see no reason for Xbox to opt out.

Well, Microsoft themselves said this is the last console generation and Xbox One would last a lifetime.

But considering that was just some cheap PR: No. There will obviously be more Microsoft consoles in the future.

Microsoft will announce their XBox One Dock for Switch: plays all Switch-games in 4K and has an optical disc-reader to play X1-games.

Joking aside: Microsofts position is far from good, but it is not bad either. In difference to Sony (which could lose a lot with the wrong move), Microsoft is in the perfect position to make experiments. They have made a lot of experience since their entry in the market, they have some game studios, they have 3rd-party-relations nad they have money and research capabilities. Microsoft is in the perfect position to take some risks and develop something new and exciting. Can they pull it off? Who knows.

I think Microsoft is too prideful to walk away, but they have to come up with a sound strategy. PC gamers have no current reason to abandon Steam. Console gamers prefer the exclusives on PlayStation and Switch. M$ needs to offer something compelling in either domain or sell the division to Samsung.

Thanks for calling what I said bs before I ecen replied. If you were really open to discussion you would have just let me respond and deduced from there. But since you didn't read the thread, i'll just tell you that I made a response to the same question a few pages back. Go take a look.

I guess so MS next Xbox will probably an affordable and pretty beefy W10 gaming pc. In the end MS just can't beat Sony at their own game so why not play a different and probably less expensive one.

Well, would 30 million units in North America and only two or three million units for the rest of the world qualify as being back in the original Xbox days? If they release an XB2 in 2020 and Sony doesn't do anything to completely screw up, that's where I see them sitting by the end of an XB2's seven year life cycle. 

1. I'm thinking that the transition will be a very slow one taking years. Like I said before I don't see them up and abandoning the Xbox consoles right away. It would take them until 2022 to slowly phase it out, while they slowly phase in either an online storefront ala Steam, or a subscription based "games as a service"  model.

2. It would benifit consumers if brand new AAA games only sold for $45 and MS only took $7 out of that $45. They would have to do a ton of work to convince developers that the $45/$7 model is better than the $60/$18 model that steam currently uses though. Skipping point 3 since I mostly agree with it.

4. But MS already has to sell a game almost twice to make the same profit per game as steam. For every $60 game sale the console developer gets about $9-$10, and they might even have to pay for packaging/discs. Steam gets $18. What makes the problem worse is that MS may still be losing money on the sale of XB systems, and may still be counting on game sales to recoup that loss. If that's the case then they certainly need two console game sales to make as much money as Steam makes from one PC sale. 

5. Yeah I agree they would enter a pricing war with Steam. That's the biggest reason why I think the digital storefront path is very unlikely for MS. I think them beating out Steam is very unlikely like I said in another post on this thread. I think they'll go for "games as a service", but the whole storefront is a possibility, which is why I brought it up. 

6. They wouldn't need a huge massive campaign if they did a slow exiting of the market over 5 years time. 

I'd like to see the Profit and Loss sheets for Microsoft's Xbox division, but they don't put that information out anymore. So how can we say that matching their current (game division) profits would be impossible if we don't know their current (game division)profits? 

Have they said that? 

No, the Xbox is still important to their games business, it still pulls in profits and they know that each console generation offers a chance to completely change their standing.

Maybe if Scorpio and their next console bomb, then perhaps they'll pull out of consoles, but they are in a market with only 2 competitors that is worth billions.

nope ,they still have people like me that pay for xbox live and as long as they get most TP games there really isn't any reason to leave unless they got to the point where they sold as bad as wii u and vita have