[kjk]

Originally Posted by fjtorres

As for XBOX, it is equally well-documented that the console reached breakeven back in 2006 and has been producing hardware profits ever since.
http://www.gamasutra.com/php-bin/new...hp?story=11833
They have been generating significant profit since at least 2007:
http://www.next-gen.biz/news/isuppli...ntinue-decline
Finally, it is hardly a secret that the new 360s with the single -chip architecture at $299 has a profit margin of over US$100.

A bit off topic, but your second point is incorrect, and your second and third points are based solely on iSuppli, which is not really a reliable source (I'd consider the only reliable source to be Microsoft for what their profit margins are).

If Microsoft has been producing "hardware profits since 2007", then why, in their earnings call for F4Q08 http://seekingalpha.com/article/8561...ript?find=xbox , did Colleen Healy mention:

First, cost of revenue; we sold more Xbox 360 consoles than our guidance had reflected.

In other words, they sold more hardware, so their costs increased.
COO Liddell explained:

For example, on the revenue side, we sold more Xboxes, so we had more COGS. That’s good news, okay? We don’t make any money from those but overall in terms of long-term health of the business, the more consoles we sell, the better.

(emphasis added)

As far as the new Xbox360 Slim-we won't know til earnings come out-and probably not much color on the issue this quarter, since it is pretty new.