Analyst: "Gaming has been a disastrous endeavor for Microsoft"

"'Particularly from an investment perspective,' says Wall Streeter Roger Ehrenberg. Note, this doesn't mean the Xbox has been a disaster for gamers -- far from it (cough, cough Halo) -- but Ehrenberg makes a strong case that the Xbox has failed investors by hemorrhaging Microsoft's Home & Electronics profits. He also believes that when a console fails in Japan, as the 360 appears to have done, it cannot succeed in the world market (Caveat: NEC's PC Engine did very well in Japan, and Japan alone).

From the article: 'Microsoft needs to take a long, hard look at its gaming strategy - and, in fact, its entire H&E strategy. At what point, regardless of its virtually endless financial resources, does it say 'enough is enough.''"