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Ail said:
XBL subscription rate increased following the increased 360 sales due to the price cut.
It's hardly a proof the 360 division is making money.
Last quarter following a EU price cut the whole enterntainment division was a in red, a quarter that had titles like GTA4 released...

Personally I would be really surprised if this quarter ( that will include 2 months of US price cut) the entertainment division is able to show a profit....


 

I am sure XBL subrscriptions increased after the price cut, but those impressive numbers happened before the price cut. The numbers increased markedly because of the awesome games released.