Last I checked the XBox was still a net loss for MS. Ed: http://www.neowin.net/news/report-microsofts-xbox-division-h.... The numbers look really bad if you look at opportunity cost. And long term things are not so hot as they still don't own the market with the PS4 selling significantly faster. http://www.extremetech.com/gaming/187371-ps4-outselling-the-...

However they sold a wide range of peripherals (mice, keyboard, etc) which was profitable just not a significant impact on their bottom line.