The reason that XBOX was losing money wasnt because they weren't selling, its because not enough games were being bought. Microsofts strategy was to put out this beast of a system which would lose them money because the hardware at the time was too expensive to technically be selling for 300-350$, but it would allow games like Halo (produced by microsoft ofcourse) to come out and sell millions. And it worked. The xbox sold plenty, infact you couldnt find it in stores for months, I remember ebay had them for upwards of 500-600$. The fact was, was that microsoft was just losing money on the xbox itself.