X-Box: $-1,000,000,000 a year

[A Black Falcon]

Of course they will lose money on every system sold, just like every other console that has ever come to existence, but this time Microsoft has a strategy to reduce the cost, break even, and then profit from their hardware in the shortest time possible (annual cost reduction). That is why they've gone to such lengths as to take control over all the technology in the Xbox 360 (no royalties due), create a larger profile of first-party games (cause software is where the money is made), and getting ALL games Xbox Live aware to make more of an incentive to get people on the service.

Every console to come into existance? Then why does Nintendo make such a big deal about not losing money on hardware... and why is Sony selling PS2s, which by now are very cheap to make, for $150? Yeah. They're not exactly losing money on that one anymore. Yes, most consoles are money-losers to sell when new (not all, but most). But they over time get to the point where they start making money... usually. That didn't happen for Xbox because of high costs... so yes, they are trying to lower them this time. Will it work? Somewhat I'm sure, but who knows how long it'll be until MS is actually making money off X360 sales... they'll have to rely on software sales, and since their first-to-third party ratio is a lot closer to Sony's than Nintendo's, that won't make them as much as they need, unless X360 is a huge hit... I don't see them making money soon, on a consistent basis.

I don't agree. Japanese-made games sell alot in places other than Japan. Resident Evil, Final Fantasy, Metal Gear, et al have proven that Japanese developers can do well in the states. Why wouldn't they try to tap into that market?

Some do, some don't. Nintendo is closer to 'don't', I would definitely say. Oh, there are exceptions, like Metroid Prime and the 'nunchuck' controller addon (statedly primarially for FPSes), but overall? Nintendo thinks of Japan first, designs their product, and then tries to figure out how they can spin whatever they're doing to be attractive in the rest of the world too. Why else would the GC have such a total lack of online gaming? Yeah, because online is more popular in the US than in Japan...

The gap between MS and Sony as for who has the most third party exclusives is closing.

Why are we bringing up Nintendo? They are in third place, and from the looks of it they'll stay there. All analyst have Nintendo pegged as losing more market share this next go-round, Microsoft gaining ground, and Sony eventually taking first place.

Analysts have never been right, and relying on them is not really a way to win points... 'all analysts think Nintendo will fail'? Well, one analyst said so, but since when do they have any credibility? Nintendo has a good opportunity here and could be very, very successful in Japan. The rest of the world? We just don't know. It really depends on the games. But counting them out already is quite foolish... GC did lose ground from where they were with the N64, but I think they can make that back. :)