Microsoft's entertainment division is in the hole 1.9 billion US this year partly in thanks to the costs associated with that three-year warranty extension. Sounds like a lot, right? But despite these losses our dear departed Peter Moore still predicts a better future for the 360:

Real quick: are you still going to be profitable for the next fiscal year?
Yes. sir. Yes indeed. Absolutely.

Of course, 1.9 billion is just a drop of water from the Microsoft money ocean but it does make one wonder: exactly how much would they have to lose on this thing before they gave up?