They don't have to need a big game seller to make a profit, as they and other console always make money off every game sold. They make between 8-11 dollars off every game. In othe rwords if your install base reaches a good point, you could still be loosing tons of cash on the hardware and make it all back on software sales.
Also what this doesn't take into account is the people already working on xbox 2. I already know of some people invovled with this.
Also what this doesn't take into account is the people already working on xbox 2. I already know of some people invovled with this.