No, Nintendo learned after the 64 and the gamecube, that they need money. That is why their consoles have not had a signifigant price drop since release. Seriously, why hasn't the Wii? I imagine that once the motionplus attachment comes out, they will price drop the console, as they do not want to suffer from Segaitis (Where you pump money into attachments that kinda suck). I do believe that it is still a hot game console because of the smart casual gamer approach, but I do not like the fact that they are already talking about a new system for 2011? It just seems too soon. As for the whole Ballmer comments, and the comments on this site about them, I believe that MS has done all right for this console life span. They got more numbers of consoles in people's houses than the original xbox, Lots of people still love the way Xbox Live is setup, they have great IP's on the system (gears of war, halo, fable, ect.) and they have gotten exclusive games away from Sony (Final Fantasy 13 anyone?). In my mind, even if we were not making a profit, I would call that a win in the Microsoft camp. Sony lucked out by having perfect timing. the PS one came out when there was no new systems (64 was delayed, and came out about 6 months later), managed to get exclusives away from nintendo, and built up a solid rep with publishers. Does that not sound like what MS has done this span? Profit or not, it is a win for their camp, as it will set the ground for the next console...