Rock_on_2008 on 26 February 2008
Well MS lose money by extending warranties from 1 year to 3 years to cover RROD, failure rate of 1 in 3 consoles sold, to the tune of around one billion dollars.
Well up to now MS has continuously made losses on its XBox Consoles for the past 6 years and have only recently made profits.
MS make more than enough money through exclusive rights on every PC sold it receives royalties whether or not Windows is installed on a PC.
