Xbox 360 Update Shuts Out Hackers, Fixes Issues
Gamasutra reports on the update to the Xbox 360's Live element, which fixes a number of bugs and smooths out certain elements of the system. It, allegedly, is also intended to shut out folks trying to hack Microsoft's new console by making the demo disc unusable on retail machines. From the article: "The demo disc in question was produced for Xbox 360 retail demo kiosks, and was found not to contain any copy-protection when hackers obtained their own unauthorized copy of the software in mid-December ... meaning it was possible to run demo versions of the Xbox 360 software on the disc on burned media. Several commenters on website Xbox-Scene seem to confirm that the disc is no longer functional."
Nintendo has always sold it consoles for a profit perhaps only losing slight amounts of money right around when it cut prices on the GameCube to $99. Selling at a loss is a recent thing, done by companies that can survive off of other products until revenue from game licenses kicks up. Nintendo, as a company that lives and dies by video games and consoles alone, has always had to sell the system itself at a small profit to stay in business.
If it's for-profit but free, you're not the customer -- you're the product (e.g., the Slashdot Beta's "audience").