In an interview with eWeek, Robbie Bach, president of Microsoft's Entertainment and Devices division, disclosed that he believes the Xbox 360 will be profitable by next year. We reported recently that the EDD lost $315 million last quarter, down from $415 million the same time the year before. If losses continue to shrink at a similar rate every quarter, it's reasonable to assume that Bach is correct in his assessment. Bach notes that the Xbox 360 has multiple avenues to generate money. Among them are of course game sales, but Microsoft also makes money from selling ad space on Xbox Live (as well as collecting subscription fees) and selling peripherals. According to Bach, Microsoft is "humming pretty well in the business."
Also discussed in the interview is the potential of the Zune and Microsoft's plans for XNA. Hit the "read" link to check it out.