Dean Takahashi from Mercury News was able to speak with Robbie Bach a couple of weeks ago, and they talked about a number of the challenges and achievements of the Entertainment and Devices Division at Microsoft. Bach first discussed the recently launched Zune; as an iPod killer the device has gotten mixed reviews, but Takahashi also investigated why the company chose to enter that arena, rather than challenge Sony or Nintendo in the portable gaming realm. For Bach, the question was a matter of focus, and where the company wanted to put its energies; Bach actually felt that a lack of focus might be hurting Sony in this regard.

Bach also tied the Zune into the company’s efforts with Windows Vista and the Xbox 360, leading the discussion to Microsoft’s next generation console. Bach still feels that they are on track to make their goal of 10 million consoles shipped by year’s end, and with Sony floundering on console availability, this target now seems more likely. Bach also discusses the general financials for the Entertainment division; Microsoft still feels that they are on track for profitability in the division by 2008, but with the diversity of offerings in the group, this doesn’t mean that the Xbox 360 will necessarily hit that goal by then.

Bach also talks about the Halo movie, and the difficulties of managing original intellectual property. Part of the answer seems to be that Microsoft will do things with Halo when it feels right, and that seems to be part of the reason that the movie deal fell apart. While Microsoft would certainly like to see more game releases in the Halo realm, they also seem cognizant of the dangers of saturation. Overall, the interview gives decent insight into the business aspects of the Entertainment division, while not really addressing future developments.