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They still lose money on each console, but it's a MUCH smaller amount than it used to be, it was predicted that they lost $400 at launch when the console dropped in price. The manufacturing techniques have cut cost's significantly. They don't lose anywhere near $400 per console :P

 

[Edit] In my opinion, I don't think they lose more than at most $50-75.



From 0 to KICKASS in .stupid seconds.