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).
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).