Xbox 360 really does defy gravity

[theprof00]

VGKing said:

theprof00 said:
360 had some goddamn ridiculous deals last black friday.

walmart last year

4GB Xbox 360 - $199.99 w/ free $50 Gift Card, Gears of War 3 and 3-month Xbox LIVE Gold Card (Walmart.com only starting at Midnight.)
4GB Xbox 360 Kinect Bundle - $199.96 w/ $50 Gift Card

and best buy, target, amazon, toysrus were giving 100$ gift cards with purchase of a 4gb 360.

Are these stores even making a profit with these sales? 

It's always been maintained on here that they do, but I've always argued that MS supplements sales as a kind of temporary price drop.
Sony has, in my opinion, confirmed my suspicions by saying their new strategy of pricing is retailer discounts.