Yea, especially when you consider the thousands or millions of X-Box 360s that were returned like mine due to the red lights of death.
But when you think about it from a business perspective, it makes sense. The 360 technology is more or less the same and by now the tech they are using now isn't as cutting edge (expensive) as it used to be, not to mention the R&D involved.
As for the NES, it was the only real video game console and Nintendo has always made a profit on their hardware unlike their Sony, Sega, and Microsoft counterparts.

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