It all depends I mean look how long it took Netflix to actually make some money. MS is spending amor on content and the infrastructure right now, long-term and once GP is even more established they will have something going on that is gonna be very profitable. Don't think we are there yet and I don't think they make money from their hardware sales.This is all true. I'd only say it's hard to know how profitable MS is with their Xbox division. Traditionally, services like GP are significantly more profitable than HW. Over time, it will definitely be more profitable than their own HW and others.
But you are right in general the sub model has a very high profit potential. Especially once you factor in customers that won't even need to buy an Xbox to play GP games once get stuff like a Streaming Sticks or GP apps preloaded on Smart TVs.
Not to make this into a dick measuring contest but PlayStation and Nintendo right now are crazy profitable...i think Xbox as a whole would have to perform quite a bit better to close that gap at least on a pure profit level. They both have kinda perfected the market they are targeting with record sales while MS is still working towards the highest potential of their strategy. We are still very early in terms of MS overall vision for gaming. A couple years from now these current results are gonna look small.