greenmedic88 on 25 November 2008
If you notice, the cheapest hardware also typically generates the most revenue through software (barring the PSP).
In the cast of MS, even if they were still taking a small hit on consoles by underpricing, they could easily take up the slack through sales of licensed peripherals as well as through volume of game sales.
If nothing else, the 360 as a platform does sell games.
