Xbox Live?

I agree with Aiemond on this specific issue, MS hates when the spotlight is on competitors and it would do anything to "steal" it, this time it quite deserved its share of attention, even if NATAL is by no means ready for sale, it's already doing enough to be shown, but for want of anything better it would even eat a turd during its show.
About delays, well, considering what happens when MS tries to release early, so much better for the users.

Fixed for more accuracy. Like I said earlier, I think XBOX is MS way of stopping sony, they do not want Sony to get a hub in the living room. If they can make xbox this hub, they will be happy, but imo they are just trying to keep sony out so that Windows is still the behemoth it is. Is this good for PC consumers? I don't think so as I believe there are better OS options, but that is their main product and they will protect it to the grave.

XBOX is there to stop Sony. XBOX is there to prevent PS from becoming a hub that can replace PCs. That is MS strat and they will pay now (even with no profit) if they tihnk it will make them money in the end by protecting their cash cow. This is why MS is buying exclusives (especially japenese ones, they are prolly thrilled Wii is beating PS by a ton there).

Like Nintendo did? :D

All they need to do is make some profit... And keep Sony away from their precious PC business. Actually they don't even need profit, as long as they don't lose too much money, if they can keep Sony from damaging their PC business. After all, that's why they entered the console war. Besides, they've been getting more and more profitable lately.

But I wouldn't mind them pulling out anyway, with their Live fee and all :P I just don't think it's going to happen so easily.

Wrong, though not entirely. With the original Xbox, that was pretty much the entire reason they came into gaming. For the 360, after they got their first taste of profits, they soon realized the potential they could get in the gaming world in terms of profits. After making consistent profits and rather soundly defeating Sony's ability into a possible replacement for the home PC, they started guning for the top spot.

Enter Natal. MS doesn't seem as obsessed with beating Sony as much as they used to, so much as making sure Sony stays out of their way as they attempt a move on Nintendo's crown.

microsoft probably will not pull out of the gaming concole sector until it can dominate and ultimately phase out consoles altogether and allow PC to be the only platform

just like how google and gmail is a threat to the pc market because of their desire to make everything online such that all you would need is internet access, microsoft sees consoles in general as a threat to pc gaming, it would seem that microsoft just wants to dominate the pc market and everything asscoiated with it, to them the xbox is just a way to phase out consoles, they would care less about it being profitable

i would hardly say that xbox is bigger than playstation, i think that can only be said if xbox is still ony top when ps3 drops its price, because siply put, the xbox is not selling that much more than the ps3 while being so much cheaper

Oh, they do like the profits, but the focus is still on Sony. Look at the moves they have been making this generation. The buying of games in japan (or however you want to term it), the paying for exclusives. These are not to bump Nintendo off, these are direct challenges to Sony. I think this is their focus and will be until Sony has been run out. Sony hurt itself with the price issue, of course, and iis having problems, but MS is not going to make the mistake of thinking they are down for the count. They do not believe it is safe yet, imo.

Natal is not aimed at Nintendo, Natal is aimed at Sony. If they did not think Sony was going to come out with the wand at E3 or if they honestly believed that Sony never would come out with motion controls it would not have been shown yet. MS loves trumping and that was Natal, trying to tale focus of Sony.

As for Nintendo, I think MS would try to comepete with them after they are sure Sony will not infringe, but I don't think they have the corperate strategy or philosophy to do so. That is not to say that they won't make profit there, but they will not get to the "rise to the heavens" profits or marketshare of Nintendo. Nintendo is run by people who very much understand business right now. Look at the interviews with Iwata and Miyamoto. Its pure gold from that standpoint.

That is my overview ATM of what is going on in the market and the strategy of MS.

@Aiemond

microsoft is aiming at consoles in general, while it seems like a conspiracy theory, the dismissal of all consoles is their end goal