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TheLastStarFighter said:
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.

Lets reserve that to MS, if they execute the 720 launch and lifecycle in the right way they sure as hell can get the Xbox name to be profitable, I would say that around 3-4b pure profit has to come out of 720 and Xbox will be in the black. As I said the Xbox has always been a part of the EDD division which clouds your judgement about how much they lost on Xbox alone.