Xbox Not Good Enough?

Apparantly the XBox division of microsoft was in the red this last financial year. Is it possible that Sony's Playstation is too strong for Microsoft to take control of the console market?

I don't think so, despite Microsofts bad attempts at operating systems, every other avenue they take they usually do a good job at. I guess a console is like another operating system, but I think they'll make a come back.

Although I guess that depends whether analyst, Michael Pachter, is correct in saying the next generation of entertainment growth won't occur till the Playstation 3 is out.