the xbox360 may be in second now but it will finish in last. Mircosoft is loseing money right now on core system and the regular but they are makeing money on the elite. they are also loseing on on the HDDVD dirve. now most companies make this money up by selling software. Sence most of mircosofts games are 3rd party Mircosoft isnt makeing egounh games of their own to make this money up. The red ring of death is makeing it so microsoft is having to do repeirs for free. Senice the xbox360 is at a 33% failure rate they are loseing alot of money on this. Mirosoft had to spend 20m fixing 360s and they are still failing. from june to now 17 shippments of xbox360s have been called back. this is a result of them starting productoin 69 days before the lunach. Now Microsoft for the last 5 years has been loseing money but Mircosfot stated that thier gameing divsoin would be porifitable in 2008. in 2008 there is a high chance of the PS3 passing the 360 wicth then 3rd party devolpers will support the PS3 and not the 360. this will result in the PS3 getting more games and makeing more people buying a ps3 insted of a 360. No 3rd party support will lead to the downfall of the xbox. this is the same thing that happened to the gamecube. the only resoin nintendo is still alive is from the NES,SNES and N64. If we look back a gen the xbox didnt do very good. let me remind you it only beat the gamecube by 2m units. Now everyone is saying that Xbox360 has better games than Ps3 and wii. Now lets take a look back a year and a half ago on june 2006.bback then the xbox360 had no good games. Now it does so the Ps3 is moveing at a faster rate as the 360 is the only thing is the 360 had a years start so in the long run the ps3 will have better games than the 360. this all depends on the 360s slaes and at the rate the 360 is selling now it is doomed. now this is all a predictoin but this is possible that it might happen and end up as the dreamcast. like i said it all depends on the 360s sales

I am not sure if I agree.
I know Microsoft will drop out of the game industry but not after a "Xbox 720".

BY THE TIME I READ AND REPLIED SORIKU BEAT ME!?!?!?!?!

I hope so...

If Microsoft does drop out it won't be out of the game industry but out of the hardware and just go Sega's way and become a publisher, and well Microsoft will do what Microsoft does well and that's software.

I had a very hard time getting through that, but I doubt thats the case.

The failure rate is horrendous (its actually 100% of all systems they sold before about August, not 33%, thats just what they average per what ever length of time they record that info) but the system has had some killer games released on it.

Your assumption that Microsoft doesnt make money off 3rd party games is incorrect too, they have a very nice percentage guaranteed per game sold on their system. Its not as good as lets say Halo 3, which temporarily pushed them into the Black (amazing how they havnt talked about their money since then uh?) but its still good.

Now the assumption that the PS3 will pass the 360 next year is probably correct, the biggest of the big guns are being pulled next year for the PS3 and most of them are first party, its going to be a phenomenal year for them, but that doesnt mean the 360 cant continue to do well enough that they can start to recoup losses.

Im not sure why the 360 hasnt been refined enough to start turning profit on each unit, unlike the PS3 which is now just shy of breaking even and will most definitely next year start turning one on each system with the 45nm chips that are being developed for it. Maybe the fix they had to do to kill the Red Ring of Death is so drastic that they have to start from scratch for their refinement, I dont know. But to say that they wont be able to start by next year is probably foolish.

If anything will come of their failure to make a dependable system it will be when all those thousands if not hundreds of thousands of 360 owners next year get their red ring and see Gran Turismo 5, LittleBigPlanet, Killzone 2, Home, Metal Gear Solid 4 and maybe Final Fantasy XIII will buy a PS3 and end up sticking with the system.

I dont know if someone has said this, but I think the big thing that everyone should be looking for is when the PS3 hits 299 a unit. I think thats about right for people that are still plugging in their Playstation 2's to start buying the PS3, and Ive heard somewhere that 120,000,000 people as an installed user base is a big deal...

 Looks at Vista, Looks at XP SP3. looks 2000 SP4. LAWL 

 MS does good software? hmm... that's news to me ;)

 you could laugh at those products, but their's no denying those products makes them bucket loads of money, well not so much with Vista but Vista in the long run will be their cash cow.

 well I'm also including  their games, I mean halo 3 was literally printing money for them.