When Xbox first hit the market five years ago, it was given little chance of catching the Sony PlayStation console. But, Microsoft was willing to make a huge investment in the project. Over the last three fiscal years, the devices division of the world's largest software company has lost $3.7 billion. While the $300 million sales of "Halo 3" will put a dent in that loss going forward, the deficit will not be overcome unless Xbox 360 unit sales tick up sharply.
Microsoft still has to face a potential price cut on the Sony PS3, which needs to goose sales,and the already successful Nintendo Wii. At least it as something that customers can finally get excited about. Just in time for the holidays.