What are you loving? That the great american company is beating your favourite japanese company in sales and profit this gen?

Reports where about the whole XBox brand, and most probably Elites were already profiting in the past at $399 and are now too, even at $299, but nobody ever proved Arcades are profiting.

a 4 yrs old console.. selling at a loss.. doesnt seem likely, especially since the reduction in chip size(s) etc. Id say MS is losing ore money on grabbing titles, and ads..They have enough plans in place to suck the consumers off money, LIVE, HDD, wifi etc..

Losing money? after 4 yrs? It would seem a lil, well.. disturbing..

If they are losing money, it may be on the arcade, combined with the amount of repairs made on 360's. Other than that, IMO the Elite is profitable.

Problem is that the report claims Xbox sales are weaking this qtr (end September 30th).  360 sales this quarter are very near what they were last year.  Then add the fact that the SKU that had a price reduction was the SKU that is clearly profitable.  So the ratio of Arcade to Pro/Elite would be leaning more towards the clearly profitable SKU.  Then you add in a game in September that is 1st party and may hit 3 million before end of the month.

I would love to see this Anaylist Curtis Shauger's source on the 360 consoles losing money per console sold. In fact he doesn't include any sources what so-ever. Hmmm... Hey guys I just analyzed Sony and found out they are actually bankrupt and in debt by $300B yen and lose $2,450 per PS3 sold...

Source, you say? I don't need one, I'm an analyst

@arsenicazure:
PS3 Slim is ALMOST breaking even at $299, so, as Xenon costs a little less than Cell and DVD a little less (production cost, I mean, what MS and Sony pay) than BD, I'm pretty sure XB360 Elite is doing a little profit at $299 (and at $399 it was huge), but HDD and little else have an industrial price smaller than $100. It's not a proof, I know, but people believing Arcade is profiting never proved it too, and the analogy I just wrote is more in favour of my belief than theirs.

But in fact, I don't agree with that analyst, I don't question overall profitability of the brand, I just think it's LIKELY that if there are still losses on HW, they are only on Arcades.

Certainly the Arcade component costs have dropped over the past year plus. Remember the first Arcades at $199.99 were falcons. Jaspers cost less to produce. BR drives cost ~$50 more than DVD drives. Arcade has no HDD so that drops about $50 per unit. 360 also doesnt have a couple of components (like WiFi) built in that adds to PS3 cost (slightly). If PS3 just about breaking even than a HDD drive equipped 360 has to be making at least $50 per unit.

^^
You are overestimating cost difference and HDD wholesale price, those you report were more likely at the time of the last iSuppli estimate we too were able to read on this site, published on December 2008 and based on data of October 2008.