Their console is a hit. That's great.
I don't know about that - I doubt "hit" should be determined by the amount of financial losses to its creator. The lowly Wii, that everyone laughed off when it was launched, kicked the Xbox to the curb in sales (yet was profitable from day one). I remember one of the MS execs saying that the 360 absolutely had to succeed in Japan or the platform was in big trouble. Well, the 360 is in a
distant third place (out of 3) in Japan. I doubt that's the kind of "success" they had in mind.
And good luck competing with the PS3 going forward, now that Sony has matched MS in price, the game catalog has improved vastly, and the PS3 offers superior hardware, including Blu-ray (and free online gaming). MS will have to cut the price again, and the losses will continue.
So why is everything else they regurgitate so bad, late, and incredibly boring? Should the "Xbox team" be running the other MS deparments, then? The amount of creative disconnect between MS products (and what seems to be between company divisions) is colossal. Half the problem is incredibly lousy management. The other half is probably a lousy attitude + really low standards that seems to infect the entire organization. What are MS' prioties? Do they realize the consjmer market is made up of regular people, not IT managers-in-training?
Microsoft is a corporate bureaucracy at its worst, with no true focus and no real sense of what the
consumer wants. They had to copy Nintendo's Mii system and now they're trying to implement motion control (which, again, everyone laughed at when Nintendo launched the Wii).
The Xbox
still doesn't completely play well with other Microsoft hardware and software. Even groups within the same division can't get on the same page! Hmmm...
MS is always a day late (but never a dollar short) and completely bereft of original ideas. The corporate culture is just not about creative thinking and never has been (and never will be). They are the Acme Corporation of technology. And hey, that's worked well for them. But maybe they just aren't cut out for the consumer space like they thought they were and should focus on what they're good at - mediocre office computing.