They are definately willing to lose some money to sell consoles :) They should be able to get 40-80gb drive for the same price it cost them to get a 10gb last time.. maybe less (hopefully).

I agree with FaaR. Just the cost for those "multiple IBM processors and a next-generation ATI graphics chip" alone will be more than the $250 ... c'mon.

huh? They are NOT going to make a profit on selling the xbox consoles I can tell you that right now. Think of all the advertising, research costs, production facilities, etc. They make the money on games and xbox live and stuff like that.