The fallback position is probably to double down and make it successful, Connors told the conference in response to a question about whether an exit strategy for the Xbox existed. Although no official figures for Microsoft’s losses on Xbox to date exist, it’s known that the home entertainment division of the company lost $177 million in the last financial quarter, and analysts believe that over $2 billion will be spent on the console over five years.
The statement from Connors confirms that Xbox is a key business for Microsoft, and one which it is completely committed to. The drive to bring Microsoft software and technology out of the office and into the living room is clearly vital to the company’s future strategy – making capitulation to the PS2, which is widely considered to have an unshakable lead in this generation of the console wars, completely unthinkable.
Source: Gamesindustry.biz