Well there's money everywhere - groceries is a 100 billion dollar industry too, I don't think it's the "epitome of zealotry" for MS to ignore groceries.
Mobile wasn't exactly a hot industry 10 years ago. It's the job of a hundred billion dollar company like MS to make big investments in billion dollar markets, sure, but I don't think there's any denying Xbox was a miscalculation on MS's part.
See the market caps of Apple and MS now for lessons learned.