Microsoft has "aggressive plans" to cut costs of products in its Xbox division, reports the Dow Jones newswire, citing internal communications by Microsoft chief executive Steve Ballmer. Such plans are apparently a footnote to more significant concerns regarding Microsoft's future PC operating systems and increasing competition from free and open-source software, but the financial drain of the Xbox is no doubt a factor in Microsoft's plans for the coming years, given that the Xbox business has been operating in the red since its inception.

Exactly what Microsoft's cost-cutting plans might be remains unclear, but we'll likely learn more through the rest of the year.