Microsoft's gaming division has lost $1.26 billion from the Xbox 360 since its launch last year. They have shown dedication in attempting to break into the gaming market, and their efforts have been successful in the United States, although not financially. They have been an absolute failure in Japan, where the original XBox was an equally poor seller.

With the PS3 coming out in a few months, look for Microsoft to slash prices across the board on the XBox 360 and games, which is likely to cut even deeper into their profits.
Next Generation - Interactive Entertainment Today, Video Game and Industry News - ANALYSIS: How Much is Too Much?