Recently it was reported the Xbox division of Microsoft suffered a loss of $130 million in Q4 and how Microsoft is still operating at a loss.
Many have heard, read, and experienced the devastating reports and effects of the RROD, which are still taking place with the Microsoft Xbox 360 console.
Let me be clear, the Red Ring Of Death is not occurring at the alarming rate as it was at launch, but as stated it's not a resolved issue... a design flaw.
In fairness to Microsoft, Sony is not doing too well at the moment either. They will be reporting a massive loss of 2.9 billion, the first operating loss Sony has had in 14 years, but it does not state how the games division account for this shortfall.
The difference I see in the two consoles is not the games, because that is a personal preference to each individual game. No one can be better than the other in that category, so I tend to look at what either system is selling me as a consumer.
On one end you have Kaz Hirai of Sony. I personally find him very cocky: "The next generation doesn't start until we say it does" -Kaz Hirai, Sony.
Then you have the competition: "If you can't make it good, at least make it look good." -Bill Gates, Microsoft.
As far as whether Microsoft will introduce a new console next generation? My personal opinion is, "I don't think so."
With their games division continually to report a loss, I don't think Microsoft will and can afford to continue to operate at a loss next cycle. Microsoft has done a fantastic job of marketing this cycle, but I feel that their not doing enough with and expanding on their first party games in order to survive.
I believe they haven't done enough with their first party that will lead them into the future and I don't believe one can survive off of third party alone. I don't see Microsoft having a "True" exclusive line-up because of "Games for Windows" or "multiplats" and neither Microsoft nor Sony has stated that they will be introducing another system.
I think after this life cycle is over Microsoft will focus solely on their software and operating system. They have only commented on their longevity in out lasting the PlayStation 3, but nothing in regards to making another console.
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