Gamers interested in XBOX 720 need to keep this in mind

In reading articles like this, Microsoft cedes consoles to Sony, gives up on gaming | SemiAccurate, and others, I think it is important to keep this chart in mind:

As you can see, Microsoft makes relatively little on Entertainment (and they lose with Online Services). All their money is made with Office and the Windows OS. And I am guessing with the challenges they are having from non-PC devices like iPads and others, they are having to focus their resources on the big revenue generators. That will likely affect development of the XBOX 720, though I expect Microsoft will ultimately deliver, based on their long reputation of hanging in.

Sony has a totally different focus, although they too are being challenged by tablets and the like (as is evident by articles like this: Seven signs PlayStation Vita is a failure (Wired UK)). I expect them to push hard against Microsoft and try and dominant the console market. It will be interesting to see, and I expect gaming is going to see along of shifts in the next two years.

Chart from CHART OF THE DAY: Microsoft Income By Segment – Business Insider.


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