The engine is fine; it will continue. And it is absolutely unnecessary for the CEO of a gaming company to play a game. Gamers are some of the dumbest, least informed, and least business-savvy people on planet Earth (go read the comments about Sony, MSFT, and Nintendo over at GBATemp.com if you don't believe me). These studios, for whatever reason, were not making MSFT profits. Pure and simple. They had to go or be massively reformed. She wasn't brought in after leading one of the most profitable businesses any company has ever had to continue doing what the previous Xbox boss was doing. This needed to be done. Stop whining about it.
As for the billions in revenue that both Xbox and Sony continue to take in with their very successful (overall) gaming businesses, no
@Bladexdsl, neither one of them is on suicide watch just yet.