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@ Seece
Really??

Anyway, I think the point he is trying to make is that MS will throw money at anything and accept billions in lost. Take the original xbox.

In comparison to Nintendo who can sell a low spec console for more money than a far superior x360 and make decent profit.

Either way, simply put, if MS is currently making a profit on x360 HW even after another pricecut, then Nintendo are truely gods in this console business to sell a far lower spec (and therefore much cheaper to produce) product for far more money for so long and totally wipe the floor with the competition.

I think that's what Tretton meant.