Lifetime, Xbox lost money. Their bet is that Project Natal will crush Wii. MS lost on the first years, they're making a profit since Halo 3 launch (yearly, at least until 2008 fiscal quarter)
The Xbox 360 has been a success for MS, it displaced Sony. But they made the mistake of focusing on replacing the number one, and forgot the whole, which Nintendo acquired.
If the market was a cake, 360's won a slice, but Nintendo baked more.
I thought Project Natal belonged more to the Cairo, WinFS and Windows for Pen Computing bin, namely, vaporware products that don't work nearly as well as advertised (Milo and Kate? gimme a break), pre-announced by many, many months (if not years) and designed to create a FUD atmosphere that hurt the sales of competitors.
what's their per unit cost vs their income of the consoles?
i thought they were mostly loss leaders. so how have the games been selling?