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From www.gamesindustry.biz:

Speaking to eWeek, Robbie Bach said: "It's a business that will be profitable next year. We'll make money next year and that will be the first time, which is pretty exciting."

Considering Microsoft lost $315 million in the division 360 is in (Zune too) just for Jan-Mar 2007, this strikes me as a pretty big deal, especially since Bach mentions he expects to make the profit from software revenue offsetting hardware that still sells at a loss.

Also, the article mentions that despite only profiting from software and low hardware losses at first, the hardware itself should break even by the end of the generation.



People are difficult to govern because they have too much knowledge.

When there are more laws, there are more criminals.

- Lao Tzu