evangd007 said:I think the point made was that they could move the money into business networking which would be more profitable and have a much better ROI. I mean, it wasn't just Xbox and the Kin probably hurt the division's profits as a whole, but Entertainment needs to shape up as a whole to justify the investment in them.
There's also the fact that one of the reasons MS invested into the Xbox was to cover themselves if PC users migrated to TV multimedia boxes, which is what they want the Xbox to be in the first place. Since the migration was instead to notebooks, netbooks, smart phones, and iWhatevers, it isn't as important anymore.
MS has enough money to expand or explore whatever business they think would be worth the effort. They don't need to cut a profitable division to do it.