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Yeah, it is misleading to say that because the cost of a tested, boxed unit off the assembly lines costs less than the MSRP that MS is making a "profit."

Does not account for shipping costs to retailer warehouses or retailer's cut.

Still, it does mean that both Sony and MS are minimizing their losses on hardware out of the starting gates, which will mean a quicker transition into profitability as manufacturing costs are streamlined over the next year or two.

Does anyone know the wholesale price of the XB1 offhand?