They go over it a bit in
this book. A bit dry, but if you like inside baseball it's worth your time.
Nvidia didn't screw Microsoft as much as they signed a bad contract. The way it was structured Nvidia made the GPU themselves and sold it to MS. Traditionally as you shrink the die and improve your process, chips become much easier and cheaper to produce. The problem was that under the agreement Nvidia was under no obligation to pass those savings on to MS. They just kept charging the same price and pocketed the cash themselves. That, combined with the HDD meant that Microsoft was selling the Xbox at more of a loss at the end of it's life than they were at launch.
Very good reasons to kill it dead. With the 360 it was a priority to control GPU manufacture themselves. AMD was willing to play ball.