I think MS is doing ok with the 360. They have a different business model that Nintendo. From what I’ve read, Nintendo has always made money off every console sold. However they’re not selling many games compared to the 360, so the big bulk of their profit comes from console sales. 360 is almost the other way around, it started at a loss on consoles, and now it probably breaks even (makes a little $ maybe), but they sell alot of games, and thats their bread and butter, game sales. So Wii makes money off the casual gamer buying their consoles, and the 360 makes it off the hardcore gamer buying lots of games. The PS3 with its limited titles (some really good ones, but still a small library), is losing money hand over fist.