Just last week, Microsoft apologized for persistent glitches in its Xbox Live video-on-demand service. It took $1 billion in charges in its 2007 fourth fiscal quarter to cover warranty expenses stemming from a widespread hardware malfunction in the Xbox 360 game console. Those events left many of the company’s detractors positively aglow in schadenfreude. But Microsoft’s entertainment and devices division, which includes the Xbox, the Zune and other media platforms, is doing a lot better than those critics might think. (Forbes)
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