Most gamers know that both Microsoft and Sony sell their consoles at a loss, making up for it in peripherals and games. What many gamers may not be aware is that the entire Xbox 360 branch of Microsoft has been running in the red since it was launched. However with the incredible sales of Halo 3 Microsoft will be posting their first profitable quarter for the Xbox 360 arm of the company. This is especially amazing when one considers the huge losses Microsoft suffered from having to extend a three-year retroactive warranty on the console to alleviate the roars of dissatisfaction from many gamers who experienced the ‘red lights of death’.