Microsoft said they were sacking 1,400 people across the entire company, yet a disproportionate number of those cuts fell upon the (relatively) small gaming group. What gives? Did somebody piss in Steve Ballmer's coffee?
In the literal sense, no, but somebody looking at Micosoft's research & development budget may well have exclaimed "oh man, the entertainment & services division is sure pissing in everybody else's coffee".
Look at this graph. It shows the R&D spending across the entire company in the six months leading up to December 31, 2008. Now look at the far right. Look how much the entertainment & services division (the Xbox, Games for Windows, Zune & Windows Mobile guys) blew through.
They spent more than the Windows guys!