I’m dazzled. The president of Microsoft’s Entertainment and Devices division said that he expects the Xbox console business to finally make money next year, in 2008 which by all business philosophies it’s absurd.

"Xbox is the hardest piece of consumer electronics hardware to produce in the world, no debate," he said, admitting that "costs are a little higher than we’d like". Microsoft doesn’t expect to make a profit on hardware alone, but "we’ll probably be gross margin neutral on that over the life cycle of the product, [...]".