You're right. But a few corrections: 1) Microsoft makes money on the most expensive Xbox 360 (the Elite) for sure. The margins are probably close on the normal

You're right. But a few corrections: 1) Microsoft makes money on the most expensive Xbox 360 (the Elite) for sure. The margins are probably close on the normal 360, and maybe taking a tiny loss on the new Arcade SKU. 2) While the Wii is cheaper to develop for, the biggest moneymakers have all been on the Xbox 360, and I suspect that'll be true for a while. The big sellers are all multiplayer online, and the Xbox LIVE stuff is best of breed there. That said, Nintendo's going to definitely see an uptick in 3rd party games, if only because there haven't been all that many so far. 3) The Wii isn't actually dominating the Xbox 360 in the US in absolute terms.