Biggest news isn't that the EDD division made a loss in the quarter but that MS missed estimates and lowered future guidance.
This kind of move is going to make it harder for them to cut console prices further in the next months..

That is incorrect.

Read the report again.

Only 24 million $ of costs are attributed to that acquisition.

The costs of the purchase of companies isn't reflected into a companie's quarterly or annual financials that way....

Like Rocketpig mentionned the loss is probably related in large parts to the Euro price cut.

1 million consoles sold in Others the last 3 months time 150$ price cut ( 100 euros) = 150 million $........

The biggest news is not that the EDD lost money in the 4th fiscal quarter, but that the EDD turned an operating profit for the FY 2008. This is seen as a milestone for the EDD, and the catalyst behind their achieving profitability has been Xbox Live and the 360.

MS reports some of its divisions' expenses , including part or all R&D, extraordinary losses and other expenses (like RRoD and other reliability problems, lawsuits, fines, etc) in a separate report item, "Corporate Level Activity", so, if a division shows a loss, you know it's losing (but not precisely how much), otherwise, unless you get a detailed report and are able to read it, you don't know if that division is really earning or losing (unless declared profit is greater than total Corporate Level Activity losses, in that case it's sure it's profitable).

The entertainment & devices division posted a 188M loss for the quarter, as a whole for the year they are around 400M up. It's the first fiscal year that the E&D division ends in profit since the whole xbox thingadingy got started so it's sorta good.

The problem is, the E&D division is like the closet MS uses to hide everything that isn't profitable so it's hard to discern if the loss was 360 related or not. The fuckers won't split the xbox into its own division until its numbers are good enough so it might take a few years still.