Part of the point the article made is that your Xbox 360 being used for Netflix and Hulu is no longer a game console, but is instead an internet connected set t

Part of the point the article made is that your Xbox 360 being used for Netflix and Hulu is no longer a game console, but is instead an internet connected set top box that happens to also have game playing capabilities in it. Microsoft makes no profit on the console itself; it depends on licensing fees on games sold. Your console, if you aren't buying games for it, would be a loss for Microsoft if not for the Xbox Live subscription required to use Netflix or Hulu.