Everybody seem to be forgetting one big point, ms only shipped 1.5m for the same period in 2005. They shipped 4.4m though in this qaurter we're discussing 2006. And they lost almost the exact same money, yet shipped 3x as many systems. Not even to mention Zune and increased 360 warranty cost probably nicked them for more dollars this time. So they're losing (most likely) at worst, 1/3 as much per 360 as this time last year. Probably less when you figure Zune and the warranty losses. It's possible ms coiuld ship as few as .5m the Jan-March Q. They said inventory is high and the 6 month plan is only 1.6. So it'll be interesting to check how much their losses go down when they report in three months. I also agree, they'll most likely price drop after they go to 65nm. By then they should be in the black per system (before the price drop).