"Xbox does not fit into Microsoft’s portfolio," he claims. "If you talk about maybe the software for it and the services, okay, but making that hardware box? My God. There is no money there!
"Yes, maybe it attracted the younger generation who want a game console, but look at the graphical quality on all these games consoles today," he explained. "Compared with the graphic systems you can have on the PC, they’re awful, they’re just awful! They’re always a generation or two behind for the simple reason that they need to sell these boxes for 250 bucks."
"I really think PC gaming should be the focus, okay? I mean, what’s the future of PC gaming? Is it going to be on these specialised boxes, or is it going to go into a more standard PC model? If the prices on PCs come down further, these boxes might be squeezed out."
I find it hard to believe that MS doesn't make that much money off of the Xbox brand. But this is definitely interesting, it also seems to suggest that they are looking for something similar akin to what Valve is doing with the "Steam Box". The article also states that we will be seeing the PS4 really soon as that is what MS is currently worried about.