XboX 360 is an expensive piece of hardware and sources close to Microsoft has confirmed that the company is still losing money on every single console.
We are not that surprised as this is usually the case with consoles excluding Nintendo Wii. Microsoft still has strong sales and the elite version of XboX 360 will hit the Europe very soon.
Microsoft bets on some cool games and they will start coming from September on as the Redmond giant plans to sell a lot of hardware and software in Q4 2007.
Microsoft's VP for Eastern Europe also said that on average Microsoft sells 1.7 games with each consoles and probably wants to grow these sales numbers. You can get some additional details here.