I think it's enough for Microsoft because there's a pretty good opportunity for Microsoft to start to sell into households that already own PS2s,
Microsoft has recognized that owning a significant piece of real estate in the living room is key to them being a winner in digital entertainment, ... This is a strategic investment and part of a long-term plan for them.
Microsoft is a technology company with resources that are the envy of other companies. They're definitely going to make some waves, but its not going to be easy.
There is a piece of real estate in the household that is increasing in value - and that's the place right above or right below the TV set. It sounds to me like Microsoft sees this as strategically important enough to them that they are willing to make the investment.
In the past, the perception that something has a premium price point has led to the demise of the platform. You can look at Sega as an example of that. You can look at 3DO as an example. Microsoft is going to be incredibly sensitive to that.