Sorry for all the Xbox 360 coverage, but there is no denying it - the Xbox 360 is the hottest topic this week. There is also not happening much else.

Hardware analyst iSuppli has published a report calculating the cost of the Xbox 360 for Microsoft. They come to the conclusion that Microsoft looses $126 per Xbox 360 premium console.
More details on Heise (German) or Business Week. The Game console is usually not the product companies are making money with. The money is in the games and accessories. Later in the life cycle of a console there comes the point where some money can be even be made on the hardware with optimized manufacturing.

Check out this Xbox 360 Review and also the Inside the Xbox 360 report.