Thanks for posting this, its great to have another perspective other than "The Xbox 360 is losing money because E+D is doing badly".
If there isn't decisive proof of the quantity of money the Xbox 360 is profiting Microsoft, there is pretty much decisive proof that they are infact making money and have been making money for a while.
So going forwards it means two important things.
1. Microsofts presence in the market is justified by the fact that the ARE making money on the Xbox 360.
2. Microsoft has the means to cut the price of the Xbox 360 by quite a reasonable margin if they feel they need to. To meet the goals of A. Outselling the PS3 and holding 2nd place. B. Respond to any and all likely price cuts by the PS3. C. Attempt to increase market share relative to the Wii by pricing the Xbox 360 relatively cheaper if they so chose.
Theres another thing to consider, if the new Xbox was being developed now then it would show up with increased R+D spending.
Thanks for reposting this! Its great. 
Tease.
