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The 360 has been a financial disaster. Even with the XBL add-on to revenue that MS has been getting, the cost of refurbishing all of these 360's has taken away a lot of money that they could have budgeted towards HDDVD, product upgrades, sweeter enticements for developers so that more exclusives and $$$ will come their way, etc.

MS has predicted that they will go profitable by 2008, which is fine, but 2 years after they started selling the 360. With the *very* high sales that they have had, this profitability should have came much sooner. Unless MS can pull themselves out of the hole that they are digging, I cannot see them introducing another console.