The made a proift? Wow!

is the ps3 profitable or not?

As far as I know, Microsoft still does not own any "debt." Microsoft is a debt free company.

I believe they were planning to borrow money for the yahoo deal, but Microsoft is debt free and they defeinitely do not own any debt associated with the Xbox 360.

I think some people are unaware what debt means and use terms rather loosely without knowing proper diction.

Edit: In September it was reported that Microsoft would take on some debt to finance a $40 billion stock buy back. If this occured, this is the only debt the company has ever had to date and is in no way directly associated with the Xbox 360.

Looks to me that 2009 (Still 3 quarters left including the biggest qtr of the year) may cover the 2006 loss, which was the fiscal year the 360 launched. 2008 almost covered 2005 loss (which was both Xbox and Xbox 360 R&D). Will 2010 (July 2009 through June 2010) cover 2007 loss. That leaves a 2-3 years of profit for the program.  This doesnt even take into account that some of the losses were for other programs.

Yes, the term was used loosely. I meant "in the red" in that division, not debt specifically. I know Microsoft is debt free.

If the NextXbox is to launch at the end of 2011, R+D costs should start hitting big in 2010. It means whatever is left of 2008, 2009 and a few months of 2010 (roughly 6 quarters) is all that's left before the R+D costs drown the division. Average it at 200M profit per quarter and yeah, make it 5 billion sunk costs before it shoots up again. Unless they do what's rumored sony will do, release a minor update with minimal R+D costs and sell at a profit from launch onwards.

Methinks it would be wise to do a marginal increase, much in the vein of Gamecube to Wii. Only increase the processor power a bit, make the graphics card a bit stronger, make the RAM a bit larger and faster, use the same architecture so Devs know how to tap into the power of the machine, full backwards compatibility with the previous gen from day one, etc.

And start with a MAX price of 299. That would be a sweet 8th gen.

I think It's obvious MS is not going to make up the profit difference for the original XBox. MS loss too much money to be accounted for on the original XBox and were bleeding far more then Sony ever would with the PS3 with the original box.

I'm predicting they make a small profit in the long on the 360 as long as they don't release the 720 before 2011 which may or may not happen.

Nintendo has changed the rules =)

why do we keep thinking it will come that early, last gen termination was forced, and short generations should become less common for the health of the industry 2011 is to soon 2012 earliest, better to wait till 2013-14. it would provided a clear upgrade path with truly enhanced tech. it would also provided crucial time for devs to make money back on assests they developed for this gen. I feel, and hope for the sake of the industry the next cycle is not rushed to the front burner like this one was all the player except nintendo rushed projects to get a lead, and it shows....... though that does not mean im not having fun with them