Why is MS dead, I dont get it

[theRepublic]

Gamer1211 said:

theRepublic said:

That article is from November 2006.  The 360 was launched in November 2005.  That is a full year of losses.  I would not call that "an extremely short period of time."

$70 in 1 year so my guess is $35 in 6 months, $17.50 in 3 months...

As stated in the article, after that one year, the loss was reduced to a zero loss.

This quote was taken from http://www.xbitlabs.com/news/multimedia/display/20061120132150.html , which is the source of the article you posted.

"Even though it is obvious that Microsoft still has to subtract freight, toll, retail partner’s profit and other possible charges, it is highly likely that Microsoft has either managed to reduce its loss to minimal, or is making a tiny profit selling the $399 flavour of the Xbox 360."

So Microsoft was still lossing money on each unit sold the first year on the market.