The guys at Microsoft are so clever they're stupid!

They're still waiting to make a profit on the original Xbox yes? And that's been out for, what, 2, 3 years?

The thing is, the PS3 will cost a bombshell to make too, so Sony will be in the same boat for a while.

And I've been hearing from people (and subsequently telling them it's utter bullshit) that this time round Xbox Live will be free. So if they are planning on making money from Xbox Live, and the morons who try to tell me things are right, then they are well and truly screwed.

EDIT: Go IBM! They must be laughing now. Chips in all 3 major consoles.