Apparently, the Xbox has lost Microsoft $4 billion in four years. Any other company (read: any company that didn't have the overblown monopoly revenues of Windows pouring into their coffers) would have gone belly-up by now. But Microsoft can just buy their way into any market nowadays. Their products don't have to compete on their own merits.
But don't worry, Xbox owners. They'll get that four billion dollars out of your hide eventually. Plus interest. Lots and lots of interest. Micropayments, anyone?