[georgeecollins]

Xbox did lose Microsoft billion(s) and take years to become profitable. But now it is profitable and one of their key products. They could lose billions on the Surface but they can also afford to lose billions. They have lost billions on terrible acquisitions in the last decade. I think it is better to spend the money on products that could help them be competitive.

[technoslut]

The Xbox 360 also had significant hardware problems that weren't alleviated until price did not become an issue for MS which is how it's always been on consoles.