Financial writer Jay Yarow of Yahoo paints a dismal picture of The 'Soft -- one that suggests it cannot stay in the game console business. In an editorial titled, "Steve Ballmer's Nightmare is Coming True," things are made to look rather bleak indeed. 

The article raises ten points to indicate Microsoft is in a bad way. From the threat of the iPad to the suggested failure of Windows Phone, it would seem the company has lost traction in every department. Most importantly to us, however, Yarow believes the generally healthy Xbox division can't make up for the losses, and will actually be big an expense to withhold. 

"The Xbox was never going to make up the slack, and Microsoft can no longer afford to keep investing in it," writes Yarow. "In a year of relative gloom, Microsoft's Xbox has become a big bright spot for the company. Kinect is great technology, people are still buying the console, and it's been a great entry point for Microsoft to take over the living room.

"But, for a company like Microsoft, Xbox isn't enough. Microsoft had $21 billion in operating income last year. The Entertainment and Devices division, which is home to the Xbox had $364 million in operating income. So, as nice as Xbox is, it's not going to be enough to boost Microsoft if the rest of the business collapses."