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Lord N said:

The profit that MS posted was from it's E&D division which would include mobile software, PC peripherals(joysticks, gamepads, etc), mobile software, PC games, and the Zune. There was also Halo 3, a first-party game which sold several million copies.

Third-party software sales mostly just make money for the third-parties themselves unless the console has the market share of the PS1 or PS2. When a console is selling like the 360, then it's going to need a better performance from its first-party software to turn huge profits ala the N64 and Gamecube. With the 360, this isn't happening. The software sales of the 360 aren't even helping its hardware sales considering that it's selling worse than the system with the poorest software sales(PSP).

Most indicators point to the Zune losing money don't they?  Wouldn't that mean that the 360's profit was even higher than the profit posted by the E & D division?

 



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