We shouldn’t expect them to have similar margins.
The gross margins on those segments are completely different - twice as large for services.
Microsoft reports three segments with roughly the same size and similar margins.
Microsoft is almost entirely a software company.
The xbox 360 had such terrible heat dissipation problems that it got it's own moniker 'the red ring of death'.
In the old days their HID device devision was solid, and was doing some interesting things. Back in the 90s-00s their keyboards and mice were pretty much best in class (if you wanted a membrane keyboard), the natural keyboard was a big step forward in ergonomics. On the gaming side they had solid mid range flight sticks that the rest of the industry lacked (it was either crazy high end or literal trash). Hell they even tried some coolish experimental devices that were at least interesting .. Specifically I'm thinking of the Sidewinder Strategic Commander. A kind of one handed keyboard that was sitting on top of a two axis sliding mechanism.
In the 2010s they did some interesting devices (or branded some) like the kinect and the original surface tables (the ones that looked like cocktail style arcade machines)... and they started moving into compute devices like the 'second gen' surface branded tablets/convertables/laptops. Those seem less successful overall. I don't see too many enterprises giving people surfacebooks instead of lenovos...
MS have definitely had some failures and weirdnesses (and a few straight up "should never have happened" issues like the RROD), but that's part of innovation.