I assume you mean Q2, Microsoft's fiscal year starts in July.

About the numbers, 2.2M is pretty good and 20% higher than last year when they also had a price cut and the launch of Halo 3.

Not adjusted for inflation, they are at -6.19 billion. Next quarter profits should get them to -5.8.

edit: that's for the whole E&D division, you gotta acount for the losses on Surface, Zune, and other projects. They do probably make some dime on their keyboards and mice tho.

Counting Xbox losses, they are still some 6 billion dollars of debt. Just the 360, I think it would be some 2 billion.

I estimate they'll get to -5 billion before the R+D on the nextBox starts ramping up and throws the division back to the red.

Since MS cut prices and still made money that means Sony needs to too!

I agree, with all the moneyhatting MS does, Sony should be able to throw a little money towards 3rd parties as well.

You two may be saying different things....

I agree w/ DMJ that Sony should cut console prices.  I don't think buying games results in that big of a payback...except for RPGs on PS3, it might because there is such a drought in that genre.  MS's purchase of RPGs doesn't seem to have paid off very well, by contrast (Japan sales, etc)

Erm... the price cuts weren't effective until Q2, right? The cuts won't show until the next report I think.

[edit] nevermind.  This is actually the first quarter of cheaper Jasper production, presumably, so that may explain some things.

The 360 made profit? Should I be surprised because it's the first time I've seen it do so or have I been living under a rock for too long?

The price cut was effective in September wasn't it?  There was also the reduction in price to clear out the 20gb pros.  The first quarter of the fiscal year covers July, August, and September.  That should all be part of the figures that were just released.