Microsoft in game market beyond Xbox 360

Bill Gates, speaking to Reuters, said his company will continue to develop console hardware even if the Xbox 360 doesn't lead in worldwide market share. This obviously would be the case given Microsoft's desire to control the living room either with a PC or an Xbox. But what if the 360 sells below expected targets and amounts to losses? (see Xbox lost Microsoft $4 billion (and counting))

Mr. Gates goes on to say in the article: "In terms of how we've balanced technology in the [Xbox 360], we feel certain we've done a better job than Sony. You won't really know that until a year from now, when people are talking about how the games on our machines compare to the games on Sony's machines."

Strong words although expected. But who will blink first?