Figures like that always seem to be just guesses by analysts, so I don't know how accurate they are, but last I read, Microsoft was at least breaking even on the price of the Xbox 360, with some estimating a profit of around $70 on each console. I've heard $300 loss on the PS3, too, but even if they are losing that much, I think Sony will probably be quicker to get production costs down. Still, it's a lot bigger gap to close, and Microsoft will always be ahead in a price war.

Nintendo is making profit on all of their hardware right out of the gate, so from a purely financial perspective, they're kicking both Microsoft and Sony tail. I wouldn't be surprised to see them overtake in market share this generation, either. They really have seemed to shake things up. I'll get a Wii after I get my QS8s. Soooooooon.