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

[JHawkNH]

The questions are:
1. Has the XBox line been profitable?
A. Other then a single quarter, no.

2. Will it ever be profitable?
A. Possabily.

3. Does it matter?
A. Yes, every company wants their product to be profitable eventually.

4. If it doesn't turn a profit, will that mean the end of XBox?
A. No.

I believe that MS is looking at the future of computers and see the computer becomeing replaced by the media center with computer capabilities. You should start to see this happening in 3 to 5 years.

Right now MS has the computer OS market cornered, and this is where they make the majority of their money. What would happen if everyone switch from a computer to media centers? MS would loss all that potential money in OS sales. So the xbox is designed to become the defacto media center and thus the MS OS the defacto OS for media centers.

How many computers are there in the world right now? Would 1 billion be to high a count? What if 100 million people switch from computers to a media center? At aprox $300 an OS for each media center sold that would be $30 billion in revenue vs $7 billion spent on the xbox line.

If it wasn't for the xbox line, MS would just be ceadding those revenues to whoever becomes the leader in media center hardware (more then likely Sony) at the cost of there own computer OS sales. Once a leader has been decieded in the media center race, it will be almost impossible to dethrone the leader. (As MS has shown by becomeing the leader in PC OS sales)

That is the main reason MS entered the console race and the main reason it will stay in the race untill the very end.