With Personal Electronics, Xbox is Microsoft's Ace-in-Hole
Microsoft looks lost to me. Its new Surface tablet isn't selling as well as it would like, it's taking a big risk with Windows 8, and Google's suite could threaten its core professional business.
Between the new retail spaces and its hip new tablet, Redmond appears to be chasing after Apple's mantle, with limited success. What Microsoft doesn't realize is that the key to building an empire of personal electronics is already sitting under televisions across the world: the Xbox 360.