As you may have noticed, I recently made a thrad about the PS3 and how much money Sony lost with it. Quite a few members said that the situation would be the same for the Xbox 360. So I checked the numbers MS reported since the launch of the Xbox 360 in 2005, which happend to be the FY 2006 for MS. Here are the results of the EDD (Entertainment and Devices division, which is mainly driven by the Xbox 360)
FY 2006: 1.262 billion USD Loss; Link: http://www.microsoft.com/investor/reports/ar06/staticversion/10k_fr_dis.html
FY 2007: 1.892 billion USD Loss; Link: http://www.microsoft.com/investor/reports/ar07/staticversion/10k_fr_dis.html
FY 2008: 426 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar08/10k_fr_dis.html
FY 2009: 169 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar09/10k_fr_dis.html
FY 2010: 679 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar10/10k_fr_dis.html
FY 2011: 1.324 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar11/financial_review/discussion_analysis.html
FY 2012: 364 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar12/financial-review/discussion-analysis/index.html
FY 2013 Q1: 19 million USD Profit; Link: http://www.microsoft.com/Investor/EarningsAndFinancials/Earnings/FinancialStatements/FY13/Q1/SegmentRevenues.aspx
FY 2013 Q2: 596 million USD Profit; Link: http://www.microsoft.com/Investor/EarningsAndFinancials/Earnings/FinancialStatements/FY13/Q2/SegmentRevenues.aspx
FY 2013 Q3: 342 million USD Profit; Link: http://www.microsoft.com/Investor/EarningsAndFinancials/Earnings/FinancialStatements/FY13/Q3/SegmentRevenues.aspx
As you can see, the EDD posted an overall profit of 775 million USD and counting (R&D is not included!). But there is more to consider:
In FY 2007, MS spent 1 billion USD for the RRoD. So this is already included.
In FY 2012, MS cancels the Zune (HD), which was posting losses since it was released. The last Zune was released in 2009.
In FY 2011, MS canceled the Kin phone and paid somewhere between 200 million and 350 million USD for it.
In Q4 of FY 2012 MS began paying Nokia 250 million USD per Quarter for the Windows phone agreement for 1 year, 1 billion USD in total.
In FY 2012, Skype joined the EDD. Skype was bought May 2011. Former Skype CEO said that they are profitable, but the last annual report in 2010 posted a 7 million net loss. So it probably adds something to the profits, but not overwhelmingly much. yet.
So if you try to look at the Xbox 360 / Xbox Live business seperately, it easily sits at a very healthy 2 billion USD profit for this gen.
Imagine not having GamePass on your console...