The XBL network was apparently $2Bn (though this seems hard to believe) and they must still be losing shedloads on the hardware.
Xbox Live is designed as a way to get back the money lost on the console. I mean, what exactly do you get for your ?40 a year? A username and... Nothing. It's so blatently designed to subsidise the console... Shame less than 10% of Xbox owners fell for it.
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