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kowenicki said:
@nizut76

how do you know they will be losing? MS makes profits on 360, Sony on ps3 - we have no idea.

Exactly.  MS makes profits on all 360 SKU's except a small loss on the arcade.  If MS does a redesign of their own and cuts the CPU/GPU down to 45nm like planned by the end of this year, they could easily sell the arcade model for $150 and the Elite for $200.  That'd be plenty to beat the PS3 up until the coming of Natal next year and Sony's motion.  As I said earlier, Sony's motion to be bundled with every console (to get maximum attach rate) would cost them near $60-100.  For MS on the other hand, all they need to include is the new Natal all in one device with every new 360 which would only cost them about $50.