Think about it.  Zune, Games for Windows, MSN TV, mice, keyboards, controllers, joysticks, Windows Mobile and others are all included w/ the 350 affected quarterly reports.  If the 360 was included in a separate division, say "Console Devices", it would benefit VGC, NPD, and others.  What say you VGC?

more divisions = more management = more money

Its the entertainment division. So I think they should all be combined. Even though that gives Microsoft some nice artistic license when doing their accounts. They would never make it a seperate division to help an external entity.

I think they should spin it off as a seperate entity and partner it with some other company or companies like Epic - Valve - MTV - Apple - Intel - EA - Activision where they don't have to worry so much about conflict of interest with the parent company.

... and which of those companies you think would be foolish enough to invest in a gadget which is badly designed on the hardware level and is _still_ generating negative revenue?

If it happens, it won't happen until it's a solid profit-generating business. Otherwise it'd make it a target too big for shareholder criticism.

It is profitable... 400 million in the last Calendar year so ROI for 5.5 Billion in losses is currently 7% or so. Furthermore if BOTH companies stand to profit more then theres no reason not to enter into a joint venture.