There doing minimal temporary price cuts, they dont bundle games, and they dont release teasers of new announced  Halo games, and they dont advertise much or gloat about the power of the 360. Whats the deal? Why are they so MIA and nonchalant about everything?

They know when it's pointless at this point in time and they want to be in the black for a couple of years before the entire division is cut. They will do things when they are ready to do something major.

Because they are still selling at a profit (short-term).

Why would they want to be number 1 but losing money?

its a business. profit is important. as long as the ps3 is a higher price, M$ lowering their price is stupid.

They are profiteering. profiting.

EDIT: D'oh, didn't know the difference heh.

For fanboys market share is important. For M$ shareholders profit matters more.

Because the entertainment division is finally posting profits every quarter. They would be stupid to destroy their profitability at this point.

Because Market share is irrelevant if you're losing money.

Not this past quarter :/

Yeah true. But at least they were profitable for the year. Which is much better then the situation they were in in the 6 years preceding it.