The losses that Microsoft is incurring mean nothing. Microsoft wants one thing in its industries it serves - TOTAL DOMINATION and MONOPOLY. Sony is the first enemy in this process, and for people that think Nintendo and MS are friends (Notice how Nintendo never comments on the "Wii60" relationship), think again.
With the Wii60 thing, Microsoft is manipulating the fanboys to take out their first enemy - Sony. If they are successful in that, they WILL go after Nintendo. Microsoft has acted like friends before with other companies (eg. Apple), and betrayed them.
For all the people following the "Wii60" thing, be ready for major betrayal.
Once Microsoft has monopoly, the losses will be passed to the consumer, and very effectively. Expect $1200 consoles and $120 games (in 2007 dollars). If you think I'm wrong, look at other products like Windows and Office.
Call me crazy now, but come back in 10 years and see the truth.
Here is an old article from 1999
http://www.xboxperu.com/foro/new/lod1.jpg
Oh yeah, Apple will eventually lose to the Zune.
"Naturally the common people don't want war: Neither in Russia, nor in England, nor for that matter in Germany. That is understood. But, after all, IT IS THE LEADERS of the country who determine the policy and it is always a simple matter to drag the people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship. Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is TELL THEM THEY ARE BEING ATTACKED, and denounce the peacemakers for lack of patriotism and exposing the country to danger. IT WORKS THE SAME IN ANY COUNTRY." --Hermann Goering, leading Nazi party member, at the Nuremberg War Crime Trials
Conservatives: Pushing for a small enough government to be a guest in your living room, or even better - your uterus.
