You're losing yourself in your own words squilliam, knowing nothing in economics.

As your own post clearly states, Entertainment and Devices division from MS LOST 31 million $ in three months ended March 31,2009.

Try to fanboy-spin that (or make another reverse post / thread, or a joke post, I don't know).

the xbox is 6 billion in the hole.

even with ps3 loosing money it will have hard time to top xbox losses,

well loosing it relative. as well winning.

There are still people that don't know that the Entertainment and Devices division covers more than just the Xbox 360?

@Legend : yeah, tell that to Squilliam, he posted those numbers like they meant something. I guess in depth analysis is in his next post.

My point was that theres more to the equation than X Billion in losses = Xbox 360 lost it all.

There are alot of assumptions.
But like you said.. you don't know the revenue, therefore we don't know the real story. MS could sell 4,000,000,000 consoles and make -100000000 dollars. But they could also sell 10,000 consoles and make 50,000 dollars. We just don't know. And since they are on track to beat this last years total, this is the only thing that really matters here.
With heavy hitters and the ps3's price sending shoppers to the xbox this christmas (if they don't cut it!) I think there could be a massive gap this holiday. But if they do cut it the situation could be different.

You fanboys tried this shtick after Halo 3 came out and said the 360 would stop selling.  It didn't so you tried it again around the release of Gears 2, but it still didn't stop selling.  Nearly 120,000 people worldwide bought one last week, so clearly there are people who want one but still don't have one, unless those were the last 120,000 people on earth to ever buy an xbox.  Do you think its weekly sales will be 0 this week?  If not then go spread your fanboy FUD somewhere else.

If you consider the fact that the gaming industry gets bigger and bigger every generation, then not so much. The Wii has almost sold as much as the NES, but yet the NES had around 90%+ market share; the Wii has 50%. About 180 million consoles were sold last generation. This generation is likely to reach 240 million or possibly much more.

You must also consider that the original Xbox was only on store shelves for 4-5 years, while the 360 has already nearly matched that.

Oh, and Microsoft is in the red for their Xbox franchise, so they have a lot of ground to make up if they want to be profitable.

There are a lot of factors to take in when considering if the sequel to the Xbox was/is a success. The Dreamcast sold more than some previous Sega consoles, yet Sega still dropped out.

Personally, I would say that the 360 was/is a success in terms of grabbing some of Sony's market share. It has sold better than the original Xbox, and now Microsoft has established itself as a competitor.

@ Person who made this thread:

I think the 360 will come very close to the sales it had last year. And I disagree with you on the pricecut part of your discussion. The Gamecube started at $200, quickly went to $150, and even more quickly went to $100. I think Microsoft could handle another price drop, or maybe even two, as the price of hardware falls.

This also brings up an interesting point about Nintendo. The Wii is STILL $250, the longest running system without a pricecut in gaming history, and it just so happens that it is the cheapest of the three to manufacture. I am guessing that it costs Nintendo $100 to make a Wii, and they sell it to retailers for $200, which sell it to consumers for $250. That's $100 Nintendo makes with every Wii sold. Nintendo could legitimately afford to drop their price to $200, and then down to $150, and still break even, but by that time (let's say the timeframe is 6 months between pricecuts), the Wii will be even cheaper to manufacture, and they could once again drop the price to $100.

This puts Nintendo on the pedastal right now. They are owning this generation, selling the most units as we just sit and watch as the high-tech competitors start dropping their prices to those that are lower than the Wii's. If it were up to me, I would drop the Wii price to $200 for this holiday season, releasing Wii Fit Plus alongside. As long as they had an extra 8 - 10 million Wiis in stock from November to December, they'd dominate once again.

So, the message is price cuts don't impact sales that much? If that is the case, I am curious if you can apply the same reasoning to a PS3 price cut. Why would a price cut suddenly be a difference maker for the PS3, if it hadn't been for the 360?

Also, $250 seems to be the new mass market price, considering the sales of the Wii.