Take it with a grain of salt but thats the word on the street.
Remember, their XBOX division is the only consumer-oriented division that generates profits for Microsoft.
No. The Xbox division is a financial failure. It has lost MS billions over the last decade.
I think there is a good chance that the Xbox division will be spun off if the Xbox One fails to be profitable. Although I consider that a terrible idea, investors have little interest in long term visions.
Unfortunately, popularity isn't the same as success.
It also isn't a viable stand alone business, as it barely breaks even without the true costs of developing an OS (which they would have to do if it spun out). It works as a component of a larger strategy, but not by itself