president of Microsoft's Entertainment & Devices Division, smells profits a'comin. Speaking to eWeek, Bach said that the Xbox 360 "[is a business that will be profitable next year -- we'll make money next year and that will be the first time, which is pretty exciting."
As to where the profits will come from, exactly, Bach offers this explanation:
- Software, both first-party games and third-party title through royalties
- Xbox Live: Bach relates this to an amalgam of subscription, ad-based, and download-based business models.
- Peripherals (e.g. camera, controllers)
It will be a landmark event if Microsoft begins to turn a profit, since as Bach noted they have yet to do so in the in almost six years since Xbox One debuted.