MS losses are more like $5m~$8m on the Xbox project.
Trip was right in one way, the Xbox has come too late and done too little.
A 14million installed user base worldwide after 3 years is pretty poor, when you consider the money they invested.
Just compare this to how the N64, PSOne, Saturn & GC performed.
But Trip was wrong to think that MS were being defensive. You don't spend this kind of money if you don't want too win.
The Xbox1 just had to demonstrate to developers, publishers and retail that MS were serious. The number of units sold was a bonus.
It is with Xbox360 that things will really take off. The $199 launch price and price drop to $150~$175/Halo 3 bundle when the PS3 launches in 2006 will really hit Sony.
The battle will be on next gen, unlike now where MS hardly turned up.