You don't want to say "never" about anything.
MS can subsidize losses in the Entertainment division (whatever it's called) but their stock has been stagnant for a decade because they haven't turned these new ventures into cash cows. So there's at least opportunity costs.
Now with Bach and Allard gone, who knows, there may no longer be a champion for this business. It sounds like Allard left because he got overruled on a strategic direction he advocated.
However, Ballmer did seem to think Natal was a big deal so they seem to have high hopes for it. If it doesn't do well, it's not going to make or break Xbox but they might have to reassess its goals.
Despite the improvement of the X360 over the Xbox, it's still a distant second to the Wii, which is presumably one of the reasons they push this motion controller. So before they launch Xbox Next, they have to assess what it would take to win and what it means to win the console wars.
It may just be that the console isn't the strategic product that they thought it was 10 years ago. Games are a big business and there was talk about the might of the Playstation brand encroaching on PC business -- the hyped PS2 and PS3 were suppose to be capable of replacing the PC for a lot of people. We know how MS reacted to perceived existential threats like Netscape.
But now, it's the smart phone business and search advertising along with cloud services which are the big growth markets, generating mindshare as well as huge profits already. It would not be unreasonable for MS to decide that Windows Phone is more vital to its future than Xbox. And already, Windows Phone is way behind.
It would not be surprising if MS pours resources and energy into that rather than Xbox Next. MS could certainly spend on both and other projects but will it?