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BillyBong said:

Uhm.. this was released in Jan 2013.  1 year old article stating MS's state of economics by an market news source and to add MS with a new console and you, an armchair warrior market analysis, believe they are making money off xbox?  sure guy..

Might I also suggest http://www.extremetech.com/computing/175350-microsoft-delivers-record-revenue-profits-due-to-strong-xbox-windows-phone-and-commercial-sales.  Yes.. record profits, but hardly because of xbox.  in the article itself, it states, "On the consumer side of things, Microsoft might eventually make some good money from Surface, Xbox, and Windows Phone, but at this point I think it’s pretty certain that we’re not going to see a massive billions-of-dollars-in-profit breakout hit like the iPad or iPhone. At best, Microsoft can expect some steady revenue and profit growth from the Xbox — and if it plays its cards right, 2014 might finally be the year that Surface and Windows Phone turn a profit."  Nothing about xbox making money or profitting from that division.  Also, "While the Xbox One and Xbox 360 sold 3.9 million and 3.5 million units respectively, gross margins for the Devices & Consumer Hardware division were down 46% to $0.4 billion. Total Surface revenue doubled to $0.89 billion (probably selling around 1 million Surface tablets), but costs also spiked to $0.93 billion (probably due to marketing and slim margins on the Surface tablets)."  Again, nothing about Xbox.  And this article was at the beginning of this year.  Cow Milk.. mmmm.

Who knows how much money MS has lost from the X1, especially after all that R&D on the Kinect only for the peripheral to be made non-mandatory.