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Impulsivity said:

Microsoft only made a profit because they pulled a bush administration accounting move. Every year the Iraq war costs us well over 100 billion and every year it is a "supplemental" meaning it isn't included in the budget when they determine the deficit so the deficit doesn't look as bad as it is.

In the same way Microsoft did NOT include the billion+ for RROD repairs in the entertainment division numbers so it looked like they made a small profit. They did not in fact make a profit if those numbers were included, which is why the numbers were excluded.

Microsoft has already included the costs for the RROD warranty in its financial statements.  I believe in the 2nd or the 3rd quarter in 2007 Microsoft took a $1 billion-plus charge against its earnings to account for the costs of the three year warranty.