Microsoft loses money on each Xbox. . .?

** The cost of building a Microsoft Xbox 360 video game console is nearly 40 percent higher than the retail price, technology and microchip research company iSuppli said on Wednesday.**

When I found this article, I was quite astounded. What about you?

http://news.com.com/Microsoft+loses+money+on+each+Xbox/2100-1043_3-5970560.html?part=rss&tag=5970560&subj=news

~Philip