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Boneitis said:

Strange. I've heard the 360 is $3 billion in the hole. But if Sony down only $1.3B, MS must be making a profit.

Wacky, wacky stuff.

That $1.3B number was from FY2009.  Microsoft as a company makes money like it grows on trees, it just that heir gaming division since its inception is $5.7B in the hole.   They recently restructured that division to include other things like the Zune.   So its going to be difficult to determine what the Xbox brand is doing anymore.  But they werent the only ones to do it.  Sony did it as well with their gaming division.