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ZenfoldorVGI said:
They aren't even close to making a profit, and here's why:

According to my "Microsoft is dying" article I posted, the "Financials" that said they made 500,000,000 dollars last year include Zune revenue, and don't include the Billion dollars set aside to fix the RRoD.

Now with price drops looming, probably inclusion of an expensive Blu-Ray addon, and failure of HD-DVD with no bail out Halo 3 type first party games on the horizon, I think the 360 gaming devision, even with Zune support, will go back into the red pretty deep this year.

What do you guys think about that?

Wow this is an interesting post.

The Zune is the profitable part of the division that the 360 is in.

Microsoft must have been counting on huge profits on HD-DVD drives.

Now MS is going to start selling Bly-Ray  addons at a loss or putting them into the 360 at a loss.

 

I think someone is really stretching.  Reason MS can drop price on 360 is because cost to produce has dropped far enought. Falcon units dont have the RROD problem so less potential repair costs. Software profit is just going to continue to rise.



Its libraries that sell systems not a single game.