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Profitability is Peter Moore's #1 concern (and for good reason). Despite the fact that the hardware now costs less to produce than the sticker price, as a whole XBox isn't turning a profit due to marketing costs, the expense of XBL, ongoing development of a whole slate of services for consumers and developers, and most likely some pretty friendly deals with third and second party publishers creating that great 2007 lineup of games.



"[Our former customers] are unable to find software which they WANT to play."
"The way to solve this problem lies in how to communicate what kind of games [they CAN play]."

Satoru Iwata, Nintendo President. Only slightly paraphrased.