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they will LOSE OVER 2 BILLION DOLLARS!! They loose around 150 per X-Box.
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This is actually part of the sales plan and it is common for Console hardware to break even or sell at a loss. I doub't Sony makes any money on PS2 hardware either, ditto for Nintendo. The real money is in software titles at $50 each. They are proprietary for each machine so you always know where the software is coming from. Internet Explorer is free and there are people still developing it at Microsoft.