Based on MSFT numbers:

Over 19 Million Consoles Sold (at end of Q3 FY 2008)

7.5 attach rate for games;  3.6 attach rate for accessories

Until the end of Mar 2008 - XBox has been out for (Nov 2005) = 28 months

For the 3 Quarters ending Mar 2008:

Games = $230 Million = (19 million x 7.5 attach rate divided by 28 months x 9 months @ $5 per game net profit)

Accessories = $110 Million = (19 million x 3.6 attach rate / 28 months x 9 months x $5 per accessory net profit)

XBox Live = $144 Million = (8 million PAYING customers x $2 per month net profit x 9 months)

Total Profit = $484 Million (CONSERVATIVE ASSUMPTIONS) for 9 months out of the $614 Million Profit of the Division

If your assumptions are more aggressive, then the profit is even greater.  If you have different numbers in mind, please explain.

Discuss.

I think you have profit mixed up with revenue.

Profit is the amount they make after costs are accounted for.

you are forgeting of xbox live points and downloads...movie rentals...games that microsoft publishes make them a lot more than 5 bucks.

How did I mix profit with revenue? Which numbers are you referring to?
Please explain.

@disolitude:

I think XBox Live Points is somewhat included in the Games Revenue - because if you buy a XBLA game (revenue for MSFT), then it means that you bought points, whether at retail or directly from MSFT.

For movie rentals, I am not sure it is material yet for the division, as it doesn't even really get a mention in the financials. But if you have any data/sources, let me know.