Is Microsoft profiting from X-box/X-box 360 at all?

[kn]

Side note, but sort of Relevant... Microsoft is looking at this from a number of angles... but the ultimate goal is ownership of entertainment of all forms in the living room... games, movies, tv shows, etc... The investment is more than just to make money from videogames.

That said, I thought MS was really in trouble with the 360, but it appears their moves have been carefully calculated. The only real "snafu" that is obviously a problem is the hardware failures... Outside of that, things are looking pretty positive for the division.

If MS has the kind of 4th Q they are hoping for this holiday, they will have a substantial lead over the PS3 for probably the entire of 2008 and much of 2009 if not longer. Assuming the PS3 does begin to catch up by then, MS would be in a position to release the next generation Xbox with whatever the winning format HD storage is along with all sorts of other interesting stuff picked up along the way this generation... A 2010 next gen box doesn't seem out of the question and it leaves the PS3 in an interesting position...

I don't think MS will pull out any time soon even if it continues to bleed money... As far as being profitable, I do think they will make some money this fiscal year, but they have a deep, deep hole to climb out of...