The Games division is net -300-400M over the last 12 years, up significantly since Q4 2012 where they were net -3B and the XBox One's losses are significantly smaller than the previous two generations at the same point in the cycle despite the recent price cuts. I'm not sure how much knowledge sharing there's been between the gaming division and the Azure division, but if the MS marketing is anywhere near the truth then it's likely that at least some of that groups significant profitability was gained through experience in the gaming division (kind of like how GE can lose money on the generating part of a power plant but make money on the financing or vice versa depending on how they want to structure the deal).
It seems Microsoft can no longer step into the field and copy what others have done with the assumption that just by being from Microsoft, their copy will become the new standard - even if it's marginally better than the original. And that's a good thing, IMO.
IBM went through this in the eighties and nineties, when they ultimately lost the PC market. Obviously PCs if we include all devices that run PC operating systems are still going strong despite this. If we include things that aren't considered PCs like keyboard-lacking tablets and phones, then it's absolutely roaring.
Computing will survive Microsoft losing its dominance over multiple simultaneous markets.
MESSAGE ACKNOWLEDGED -- The Pershing II missiles have been launched.