XBox 360 has had profitable years as of late, but it didn't make up for the early losses, and when you consider the original XBox and the time value of money, the XBox project initiative may never make money in and of itself. But it has other benefits to MS as a whole, and is probably worth the investment.
And yes, Playstation isn't a great project either, especially the PS3. Not as bad as XBox, but not great.
The below-cost console model is terrible, but it's how those companies could push their way into the market.








