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TL:DR - All hardware launches incur massive costs, it's pretty standard.
Better than the billions lost over the rrod mess of the xbox 360.
I guess we'll have a better picture of xbox financial as the years progress.
I wouldn't call it perfectly fine. That's a lot of money to not make back. But at least Microsoft seemed to have learned their lesson and will have greater focus on gamers.
It's not PERFECTLY fine but it isn't as bad as some people make it out to be.
I'm sure they predicted that they might have some losses when they launched their new peice of hardware.
Either start over with a better product and better customer service or leave the console buisness altogether.