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There is absolutely no way the the Game cube made more money than the PS2. If in fact that was the case Nintendo would still be supporting the System. There is no Problem in selling Hardware at a loss for Large companies it is a Risk they are well able to Handle. Micro soft and sony have way too many other areas to make the money back ie. just the fact the PS3 has already jump started the Blu-Ray market. For Nintendo it is a near impossibility to sell a console at a loss. Other than Video games they have virtually no other way to gain profits. The only thing that will happen is possibly a longer generation from Sony and Microsoft. The other Possibility is to untrench Nintendo in the buget console model. In which I mean next generation Sony and Microsoft make less advanced consoles and still take a loss. I really think that Microsoft do not view Nintendo as a competitor and I do believe Nintendo itself stated the Wii was not to be a competitor to the PS3 or 360. so in the end I believe sony and Microsoft will leave nintendo to expand the Market and be happy getting the kids dollars when thier taste matures a bit.