Also, working off all losses 'in a few years' is great, if things stay the same for those next 5-10 years. But these things can change over night. Some new device on the scene.
Being back to square one in 5-10 years isn't a resounding success though, considering the massive profits Nintendo is making.
However, success is not only measured in short term profits. When Netflix was support was added to the Xbox Dashboard software a few weeks ago, it became the number one delivery vehicle for instant watch videos overnight. To scoff at that level of influence over the entertainment space is shortsighted.
Additionally, the sales trends of every console in recorded gaming history shows 80% of the console sales occurred when the price was below $200. The 360 just recently dipped into that range this holiday season.
Before I got the 360 I was struggling with DVD's and usually resorting to watching video off my media laptop. I'm hoping Hulu starts allowing their content in Canada so I can stream shows from the internet through TVersity.
I have a Wii, but I've found the 360 winning a lot more play time over the Wii mainly because of the mature games on the console and the fact it works as a DVD player and media center just kicks the Wii when it's down.
I bought a 360 elite, I see that the Arcade version isn't as bad of a deal as I originally thought it would be. Although I think they should have gone with a 12gb SSD over a memory card, but that's from someone who filled up 20 gigs of my Xbox's HDD in about a week when I first got the console.
IMO I'd say the Xbox isn't the best selling console out there, but for gamers it's got the best content (having stolen a lot of exclusives from the PS3 like Final Fantasy); it's also a great media center (amazing when you download TVersity), both of which mean it's going to stay as close to the TV as your VCR used to (at least I know it will in my house).
Almost every console loses money at launch. Consoles start as loss leaders. The XBox 360 recently turned a profit: http://www.joystiq.com/2008/01/24/the-xbox-turns-a-profit/ ... and the value of the platform is likely to continue going up.
If the xbox360 is profitable now, it would still need to repay 6 years of massive losses.
I bought my Xbox 360 about a month ago, I've got 5 games for it (10 for my Wii that I've had since release). I've got 6 games I'm waiting for the christmas price to get, which means that in under 3 months it'll have got more games than my Wii does.
I'm sorry, but the Wii really needs a kick in the ass because just like the PowerGlove by Nintendo, the controller has amazing potential but it really fucking sucks at the moment.