Well M$ are a massive loss on hardware but it hardly does a dent on there money being the richest company in the world just about, bill gates is about $60 billion (I mean wtf you could never get closed to spending that, nice to see him giving so much into charities though) and they failed to buy Yahoo with an initial bid of billions on billions as well
M$ has a bottomless pit of money to burn it is stupid and tbh Sony is doing alight and recovered from profit margins at the end of the year but they are still in the sh*te a bit and really struggling to compete with M$ especially since Nintendo did an amazing job on a cheap crap teck machine making huge cash
I dont think they are losing a massvie amount of money anymore, if at all. The Bill Of Materials on first release came in at $525 (About £350 at the time?). That will have come down as production setups cost got covered, and they started buying larger amounts of components. Its also highly likely the 65nm chips in the newer consoles are also giving much higher yields that the older ones. Add in the fact that storage has dropped massively in price, the cost of RAM and the fact ATi will no doubt have discounted the now outdated GPU. Youre looking at a much lower cost to produce the console than origionally. I would estimate the actual production cost it now about the same as the sale price, though I would be inclined to say that the production cost is _slightly_ higher than the sale cost, but not 1/3rd more.
This is true hence the better results at the end of last year as I said but it is the ratio of the drop to the games being sold which should be on the up and up but it is not and Sony also (well some of them) that quite a lot of ps3s sold are only being used as Blu-ray players and their bu-ray players are not selling very well as a result.
Ms coked up on a few points:
HD-DVD right away as standard and use that for gaming would have got the hd war really going
Power brick is a bit stupid
Heat issues
Bar that tbh you have to say they been good with the 360 for the most part
Sonys list of issues is as long as my leg and all down to them and them alone cocking things up