One of the big complaints about the original Xbox was that Microsoft, unlike Sony and Nintendo, never got to the point at which the console itself was turning a profit. Typically, video game makers introduce a new console and take a loss on each unit sold during its first year or so, and then make up the difference as component prices fall and R&D costs are made up. Also, sales of software and accessories usually provide most profits anyway. With Xbox 360, Microsoft has pledged to turn its console into a money maker over time, as with Sony and Nintendo, and this week, a new report suggests that the company might be on the right track. According to iSuppli, Microsoft loses just $11 on each Xbox 360 Core System it sells, and $153 on the so-called premium bundle, which also includes a 20GB hard disk, a headset, a wireless controller, and a remote control. As with other game makers, however, Microsoft sees a huge profit on all software and accessory sales, and will likely start making money on the consoles within a year or two. If so, that's quite a turnaround for Microsoft, which has spent over $12 billion developing its Xbox systems so far
