The recent Microsoft losses isn\'t really an effect of Xbox development. It\'s more of a slowdown in the PC market due to lackluster products (WindowsME) and consumer unconfidence (Lack of a better word) due to the news of an economic slowdown. Apple, Sun, Microsoft, and Oracle have all reported that they\'re not going to meet earnings projections. This is also the first time it\'s happened to Microsoft since 1988 I believe.
BTW, that 200 million dollar loss Sony reported a few months back also had little to do with the PS2, but more a slowdown at theater box offices. Sony/Columbia/TriStar put out a LOT of movies this summer.. not to mention that Sony owns several theater chains.