I just learned Microsoft has been losing more money off the Xbox than they have been gaining?

Microsoft actually had to restructure (spin Bungie halo developer off) to help protect some financial interests. It seems that especially in europe RROD has taken a huge toll on the xbox division. Most people in Europe when they send their 360 in for repair to their Microsoft europe place they actually receive a brand new one in return. At one point the the postal system in the UK reported that over 500 360s a day were being sent back to Microsoft.

This is costing Microsoft huge amounts of money. And when you think that 1 and 3 owners have had at least one 360 replaced and some have had up to 3 replaced this would mean that Microsoft has recieved less then $100 for each of the three 360 they sent to the same owner. If the owner has only had one sent in then the that owner has had 2 new 360 for one original purchase price of $300 to $400 or so dollars .

Now look at total 360s shipped take 1/3 off and that is how many people actually own a 360 in the home. Now add in the cost to refurbish, Materials and labor cost each 360 sent in in the States is costing Microsoft.

Microsoft has also had lawsuits filed against them for disc scratching and RROD. So I would imagine that Microsoft is doing far worse then just trying to allude that they are doing the consumer a favor by building a system with old technology at what they call a loss.

Yes 3 years ago when they began producing the 360 the technology they used was newer and more expensive and selling a 360 back then for $249 would have cost Microsoft big time but Microsoft wasn't selling it at $249 back then they were selling it at well over $399. And it couldn't even go 1080p until a software update in Jan. 2007. And the Technology they used back then was old then. So they succeeded at making One quick Profit that in end bit them in the A$$.

that must be an old Documentary, in the beginning they lost money, but than more people started buying the 360 cuz of HALO3.

They now made much more profit (sadly ;-) cuz im more of a PS3 type, I will not buy an 360 easily bcause it breaks 60% easily)

Hope I helped!

Must have been old because Microsoft has been announced that they have broken even-- why do you think they did the price drops