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by kalid 4894 days ago
Market share and mind share don't keep a company alive; profits do.

Xbox is not profitable over its lifetime (http://www.dailyfinance.com/2012/07/15/how-one-of-microsofts...). Windows PC sales are down 20% from last year (http://reviews.cnet.com/8301-33642_7-57556199-292/windows-8-...).

Microsoft has negligible presence in the high-margin mobile and tablet space. By contrast, Apple makes hundreds of dollars from each phone/tablet sale. Phones are repurchased every 2 years, and Apple originally got $18 per user per month for each iPhone subscriber (http://news.cnet.com/8301-13579_3-9803657-37.html). Microsoft makes ~$50 from one-time PC purchases, which are replaced every 4-5 years.