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People that say the 360 doesn't have a great lineup of games this year are simply blind. Gears of war 2, fable 2, gta 4 with extra content, too human, ninja gaiden 2, splinter cell, banjo 3 (if it gets released) etc etc. Its not like the 360's games have simply dried up. The 360 will have a lot of great sellers this year.

But yes the xbox is in the red. I hope Microsoft can get it out of its hole eventually. Another thing to think about, because of the weakening us dollar the price drop in Europe wont affect the console profitability that much.