eh i hate to say this but ,M$ is making a big pile of money from games, specially their online system, i don't see them quitting
Believe it or not, the Xbox has actually lost Microsoft quite the bit of money. I don't know if they've been able to even out the losses, but they're definitely not swimming in pools of cash right now.
On top of everything, look at the Kinect. They've spent 500 million dollars just marketing it. Oh, and they lose money on every Kinect they sell. The only hope they have to make money from it is the $10 they get from each Kinect game sold.
Have I mentioned there are 40 million 360s out there? And that 25% of 360 owners claim that they're going to get the Kinect?
10 million Kinects, that means each Kinect owner would have to buy 50 Kinect games just to fulfill marketing costs.
And even then, you still have to factor in the extra issues. I doubt the entire 25% of 360 owners will actually buy it like they said they would, especially with the recent news of its insane requirements. From the comments I've read on Joystiq and Kotaku, way less people want it now than before. And for those that do actually buy it, you can safely assume that most of them won't know about the 6 foot-radius (8 for multiplayer) of free space you need in front of your TV just to play it, along with its overall inability to work right, until after they've actually tried using it. Then, out of all the Kinect games people buy, how many will be bought used? The money for used games all goes to GameStop.
So, yes, the Xbox could very well be digging itself into a grave right now. Let's just hope there's enough room for the leftover Kinects next to all those ET cartridges.
Sony's been losing tons of money pretty much up to this point. Does that mean they're going to retire?