Sounds like MS doesn't "get it" either as they had a press release this week about what happens as a result of being first to ten million.  Or perhaps, MS speaks for MS better than the fans?

lol - skimmed that thinking it was a sig of some Windows error screen dump or something similar.

Ok $ 2B profit - not bad but clearly total currently horribly mangled by PS3 costs, they should be close to Nintendo in total profits.  MS - wow - still way in the red, 360 might garner best additional revenue but MS is gonna need years of that to see a penny (or dime) of overall profit from their little adventure in Videogame land... no wonder you pay for Live.

 Nintedo = money machine...

pretty much all i got from this is that it would sell better if it was cheaper. and the only reason the wii is selling better in NA is because its cheaper.

It's not going to float I'm afraid because as I posted previously, the XBox is already the cheapest system and it's not really helping that much.

Gamestop

Wii                   $399.99 NEW (with required bundle)   Used: Not Available
Xbox 360         $349.99 NEW                                       Used: $199.99
PS3                  $399.99 NEW                                       Used: $349.99

Or Amazon.com

Wii                    $340.50 NEW (with required bundle)  Used: $309.50
Xbox 360         $349.99 NEW                                       Used: $265.95
PS3                  $399.99 NEW                                       Used: $330.99 

i love how a used wii is unavailable. it just brings a smile to my face.

Do you realize that Windows took nearly 10 years to become viable.  MS unlike most of the companies in the US is very long term thinking. They make investments that take a decade or more to become profitable.

It is also version 3 of product that people believe MS really hits the Home Run.

Hmm windows 1,2,3!

Windows 95,98 2000!

Windows Xp Vista Windows next!

ok I see a trend.

Starting accounting for 360 in 2005 isn't correct, part of R&D expenses happened and were accounted for also some years before, they didn't develop 360 just in one year. And some losses, including part of R&D, litigations and other expenses arent accounted for in the operative divisions' budgets: MS calculates, totally or in part, some expenses like “broad-based sales and marketing, product support services, human resources, legal, finance, information technology, corporate development and procurement activities, research and development and other costs, and legal settlements and contingencies” for some divisions, including Entertainment and Devices, in another mishmash report item that years ago was named "Other" and now, judging by where losses are reported, should be "Corporate-Level Activity".

You don't take into account that the sacrifices Sony did to make PS3 ahead of its times will pay in the long term giving the console a longer life, while OTOH Nintendo will have to release a Wii2 with HD as soon as HD TVs will become commonplace: obviously, given the huge success of Wii and the low cost the necessary components will have in a few years, Nintendo won't be hurted at all by this, but nevertheless Sony will have all the time it needs to build a long term success for PS3 and we know that game developers appreciate long term thinking, as it lets them acquire experience on the platform better and make it pay longer. This is also one of the reasons, besides higher profitability, that makes Sony keep on producing PS2s, it says to developers "our platforms have a long life and make your investments on them pay for more years", while MS killing XBox 1 after only three years and a half was a big slap on their face, besides on its own.

 I doubt the "Wii2" will be released when HDTVs are more common. You mentioned the PS2 still selling. Don't you think the Wii will sell similarly to the PS2? No one is certain as to when HDTV will be cheap and accessible, as for my opinion, probably a few months after TV goes digital in February 2009.