Again Huh???? The idea is they will sell a version of Windows for Xbox as a SEPARATE piece of software just like they sell games. There is no need to increase the price of the Xbox hardware. They will not bundle Windows with a Xbox and have a separate higher priced SKU...there is no need to. You just buy the software and install it yourself just like you install games on the HDD.
Windows division does not lose money...windows division makes money whether they're selling copies/licenses of Windows for PC hardware or Xbox hardware...makes no difference.
That wasnt clear in the first post.
Anyway it would be quite expensive software (much more than the pre instaled) to follow the same bussiness plan and how many people would like to do that, it is even more work than in a new PC?
It would hardly have any significant user base, IMO, and probably very little supported, a basic services interface like Live Dashboard is a much better idea IMO.
It would also be interesting to see the reaction of PC manufacturers, could they start to feel pressure and offer cheaper arm based linux/android/webos based PCs