THE CHIEF FINANCIAL officer of Microsoft told analysts earlier this week that the current Xbox console will never be profitable. In a very long presentation, John Connors told analysts in Boston: "There's no way to make money on the console in this first generation".

He said: "The real crossover in terms of profitability delta is when we get to the next generation of the Xbox console." The key to making profits with the Xbox 2, he added, is how Microsoft does the hardware and chipset design, and how it sets up the supply chain.