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Well, it doesn't entirely baffle me; having interviewed with the Xbox group, I know that they're a group set apart from the rest of the company, even geographically. They are that way to keep it distinct from the self-destructive politics elsewhere at Microsoft. The consequence is that they aren't particularly inclined to be interested in the PC world, and I suspect that since Microsoft initially laid out that distinction, the feeling of separating out gaming from the rest of the company has probably come to be pervasive even at the executive level.
So that's pretty unfortunate, but maybe things will improve ever since they canned that entertainment VP.
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