At this point, with the object of pushing Sony into submission and subsequently acceptance of MS OS and services not looking realistically attainable, Microsoft can either push hard to become the indisputable HD media hub and gaming system market leader, or it can simply let the thing run its course with minimal acceptable effort and loss, and maybe set its sight on the next hardware generation. The former doesn't seem like it'd be appealing to Microsoft. Unless one was to believe that the company has an honest interest in competing on a standalone level, but I doubt that, as I have hard time believing that MS wants to shoulder the overwhelming brunt of responsibility for pushing the market onward. For all its bells and whistles, the platform is just a conduit, and the attitude towards game software development seems pretty shortsighted.