This new is more geared towards the hardcore fans (and share holders like me) but is good to know because it does affect all gamers.  Microsoft has announced their 3rd quarter 2008 numbers and the Entertainment and Devices Division that contains the Xbox group made a 89 million dollar profit last quarter and for the year has made 614 million in profit for the fiscal year 2008.  Microsoft has also announced they have sold to retail 1.3 million in Q3, 7.5 million in fiscal '08 and over 19 million Xbox 360s LTD.

From these numbers it's clear that the Xbox business is doing well for Microsoft and are seeing solid growth.  Before fiscal '08 Microsoft only saw one quarter (launch of Halo2) of profit from the Xbox business.  Considering the manufacturing issues* Microsoft has faced that lead to a shortage of consoles in the beginning of this year, Microsoft still managed a profit for that quarter. 


*It is speculated that Microsoft shut down one OEM and shifted the demand to two other OEM partners.  The partner that chose not to continue business with Microsoft picked up manufacturing of the Nintendo Wii.

Source:
microsoft.com - Earning FY08
gamedaily.com - xbox-division-posts-profit