It's hard to tell whether exactly how much money Microsoft makes/loses on the Xbox 360. Microsoft don't release numbers for the console alone. It used to come under the vague "Home and Entertainment" division which always posted a few hundred million dollars loss each quarter. Now it comes under the even vaguer "Entertainment and Devices" division, which makes about about $500 million a quarter.
But do the maths... even if each game is making Microsoft $10, they still need to sell 100 million copies to wipe off the $1 billion for faulty consoles. That's before Microsoft have paid for advertising, wages, etc. It's fair to say that the Xbox 360 is still a loss making venture for Microsoft and has never posted a profit.
As a gamer, who cares though? Microsoft are burning their money and we're the ones gaining from it.
