The thing is, MS can afford it! The amount of profit they are earning in a quarter off Windows alone is enough to beat the crap out of both Sony and Nintendo combined! MS can stay in this game as long as it's other sectors keep on rolling in the cash. In the meant time, Sony and Nintendo can't do this because Sony is in dire finacial straits (Battery recalls, realiment, PS3 is simply too costly etc) and Nintendo, even though they are ver profitable, have only one division, which is gaming. This is why Wii is so cheap to make and will earn a profit at the very begining. StryderK

MS earns most of their money from stock market, not windows

if it is like you said so, why is sony getting all the exclusive ps games?