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blackstar said:

HELP me understand this, HELP me understand MS

the crazy price-cut in all three regions: imagine the amount of money they are going to lose on HW on all three models

the crazy RRoD: the problem is unfixable and anyone says "NO, THEY ARE FIXING IT" wake up! they have been in the market for more than 2 years and a half and it's still exist and they are losing MONEY because of RRoD

the crazy amount of 3ed part exclusive games : they have lots of that , companies are not doing this for free they are getting paid for that which also means HUGE AMOUNT OF MONEY

help me understand when they are going to be proftible when the new xbox is out on 2011??

what's the point of cutting prices and loses HUGE amount of money when u are sellling well and 5 million away from ur main competitor?

discuss -if u want :)-

You can substitute your theory with PS3 and then try to come to a conclusion. 

Sony is loosing money on every PS3 right now.  Good blu-ray player cost around $300.00 (cheapest one is about $200) there is no way that PS3 cost is $99 even without the blu-ray unit.

They already said they probably won't recoup all the developement cost of PS3 (read blu-ray & cell).  (Just like MS lost billion on their RRod Debacle)

While MS pump a lot of money in to catering 3rd Party Dev, Sony is spending million on their in-house developement.  Home, KZ2 etc. 

Discuss if you want.