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yushire said:

 Ermh... do you know that the 360 released on 2005 right? So the parts making the 360 is cheap to manufacture right now. So they didnt lose an arm and a limb when they did the price cut the 360 is already 3 years old...

A Wii is as expensive to make as the retail sale of the 360, so no I don't think MS is making profit with the 360 at this price.