You're right they did, but they also didn't make profit overall (and neither did Sony IIRC). They spent over $3 Billion on the 360 eating losses from day 1 with the failed business plan of making it back on licenses and accessories etc. It doesn't work, all 3 platform holders know it. You can't keep doing it or eventually you end up in a worse position than even Sony is today. With rumour of talks that some higher ups at MS want to cut the divsion or sell it, do you really think suggesting to your boss "it's ok, we'll eat the costs and worry later", is going to hold up? C'mon man. How many consoles need to be made before Microsoft see a profit in this industry? It's not sustainable. Heck, even cutting Kinect is a double edged sword because they've spent so bloody much on it you kind of feel like they've got no option but to continue with it just because it's a smaller loss, not because they believe in it.
Then MS is done as far as the console market goes, simple as that. If they are not willing to eat losses anymore, then they will be getting out of the console business soon. If they drop Kinect, they lose, if they cut the price without dropping it, they lose. Lose lose
IF the new CEO at MS is done with the Xbox division, then I would assume we will start seeing some signs of that soon.
As for the indie comment to Compl3x, and this is a genuine Q, but when do indies become important that it's a selling point for Kinect, but they're not a selling point for the console itself? I'm confused after the Jimquisition topic...
First of all, did I say anything in that other thread that lead you to believe that I thought indie games were not valuable content? Don't confuse me with other posters.
Secondly, where in my post did I say that indie content was a selling point for Kinect? I made a joke about the fact that there would likely be more indie games trying to use kinect motion controls vs AAA titles. I made that comment due to the indie games announced at GDC. There are some trying to use Kinect motion controls, which is more than you can say for almost any other AAA title.
No need to stir up a hypocrisy discussion