That's pretty pointless.  Giving those figures,  Sony or Microsoft both could be as likely to discontinue their games division because they rely on the same basic fundamental strategy.  Microsoft the company could be in a far better position than Sony the company, but you also could say that Microsoft (And their video game division) still isn't in a better position than Sony.

release xbox720?

Microsoft is in a worse position than Sony?

I didn't realize that a good 100-250 million overall profit last year at MS was anywhere near as bad as Sony's 2.8 Billion overall loss.

Buy some more exclusives??

In terms of it's Video game division?   6 straight years of massive losses (finally resulting in a minorly profitable 2008) and you want to crown them?   Sony the company is definitely doing worse than Microsoft.  (Although that is to be expected given the economic climate and the higher rate of competition Sony faces in it's industries).   

When comparing their video game departments,  Sony is clearly better and has been better over the course of several years.   

Then factoring in that the chart  above, might not even account for the billions spent on RROD issues?  Yikes.

Microsoft is in a worst position than sony, just add up the figures above and you will, see why.
Microsof is the only one with a negative total, -6mil.

sign an exclusive deal with porn sites to give free access while using 360?

Microsofts game division has a stronger umbrella than Sony but that's about it.  

When you put it into a business perspective (When we hear from Xbox fanboys about how Sony is going to pull a Sega and stop continuing in the hardware business),  Microsoft would be far more likely to discontinue their hardware/games division than Sony. Quite simply because it hasn't shown itself to be consistenly profitable, regardless of the money thrown at it.

The earliest data we have shows how much they have been hemorrhaging money in their video game division.   Obviously, the outlook for the 360 looks positive currently but it will have to remain that way for the entire generation to even come close to denting that huge mountain of losses that they have acquired in prior years. 

Those numbers also appear to not include RROD fees.  Which adds even more negative equity to Microsofts tally.

It will be interesting to see if Sony can post profit for it's games division in it's third year.  I would imagine that they can certainly come close.  I also would imagine that if they are as concerned with their profits as they say, that we won't see a price cut till towards the end of their current fiscal year or until they are essentially guaranteed a profitable year.

free lifetime xbox live subscription?

Sony's game division SCE is losing money and the company is losing money as a whole. That puts Sony in the worst position. Microsoft's game divison is still in the red overall but has been posting profits over the last year. More importantly, Microsoft isn't in debt. Sony is. The strong Yen is putting an additional strain on Sony where as it's making things easier for Microsoft.