rocketpig on 04 May 2007
Last I read, they're making a small profit on hardware but losing it back on marketing, distribution, etc.
With the large install base of the 360 already in place and the fact that they're making a small profit (which will be larger in September) on the hardware, Halo 3 and GTA IV put them in a nice position this fall.
They will rake in huge profits on game sales while hopefully breaking even or losing a small amount on overall hardware sales. Once they get through this holiday and hopefully have switched to 65nm process, the profits could turn into a windfall for them.
It might not happen, but they're not in that bad of shape as things stand now.
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