[citation][nom]ScoobyJooby-Jew[/nom]MSFT wants to get the hardware in the homes, and then crank out software.[/citation]
My point was that they will end up spending whatever money they would make on the software to push the hardware. Yes, the 360 has made Microsoft some profit (almost entirely from XBox Live and Halo no doubt), but the original XBox cost the company millions if not billions. Why you ask? Because they spent so much money to get the hardware into people's homes that the software couldn't save them.
If they're not careful, they're going to do it all over again. They've already eaten into the profits of their multimedia division with the worhtless Kin phone, now they're spending a cool billion from the same division to promote WP7 and Kinect, even Microsoft can run out of cash. It looks like the Office division might need to bail them out again.