Ars Technica notes that recent decreases in the costs of parts and manufacturing may mean Microsoft no longer has to subsidize the sales of their Xbox 360 console with profits from software: they may be making as much as $75 on each console sold, according to iSuppli.

Meanwhile, it is estimated that Sony will lose about $240 on each PlayStation 3.

No Xbox 360 price drops have been spotted just yet, but Microsoft would seem well-positioned to offer one if they so choose.