When you look at XBox as a business, it still have quite a long way to go. The amount of money sunk into the business is just astronomical. It may be profitable now on a Q by Q basis, but it will take years to pay the bill and there is no guarantee they can stay profitable as they invest in the next generation.
As for XBox Live, it is an impressive service, but the numbers may not tell the whole story. The article cites 23M XBox subscribers, but doesn't say whether these are paying (gold) or free members. I wonder what that mix is.
I'm not sure that's true anymore. I can't find a total figure but they turned the corner and became profitable in 2008, meaning they've now been running at a profit for 2 years. They now even make money on consoles.
Even if they're still in the red, the amount they've invested in it is trivial to MSFT. Whatever they spent, it was well worth it to get a web-connected, media-centric device connected to 40 million TVs.
Also there are ovre 40 million consoles sold, so that 23 million must be paying users. I can't imagine anyone having an Xbox without the free service (I'm not even sure you can).
As for XBox Live, it is an impressive service, but the numbers may not tell the whole story. The article cites 23M XBox subscribers, but doesn't say whether these are paying (gold) or free members. I wonder what that mix is.