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@ cleveland.
just to update..

you only have $4,571 cost of revenue to play with.. which can not include negative numbers - for obvious reasons - you cannot have items that cost "negatively", you can have zero cost, just not negative cost.

so, like my previous point, it's highly unlikely that consoles are sold at a loss in FY end Jun 08.
8.7 million consoles
zunes, pc and xbox games, accessories, etc.
even if you assume live, windows mobile has no cost.

if you just divide 4,571 and 8.7 million consoles, then it cost an average of $525 per console.
but how about all the other stuff?

in FY jun 07, cor is 4,194 divided by 6.6 million consoles = $635 per console.

again, where would you put all the other stuff?

im pretty sure zunes, pc games, xbox games (1st party), Live Points (the ones that are packaged for retail) and accessories do cost money.