Are people saying this because the Xbox actually makes money, or just because it’s popular and seems successful? The most recent overall look at profits I’m aware of is this one: http://www.neowin.net/news/report-microsofts-xbox-division-h...

If this is accurate, Microsoft has been turning a profit in recent years, but not enough to make up for years of losses from the first Xbox and the first few years of the Xbox 360. They’re about to launch a new system, which probably means they’re again going to be losing money again for a while.