Slashdot points to an interesting article that lays out ten challenges Microsoft faces in 2006. Among the list is this bad boy:

Xbox 360 Final Death Match Challenge

Microsoft executives have promised that the Xbox business would become profitable by FY'07, which begins in July 2006. Many of the pieces are in place: Microsoft beat Sony and Nintendo to market with an impressive piece of hardware, has enlisted many new third-party publishers and developers (particularly important in Japan, where the first Xbox was a dud), and has more than two million paying customers for Xbox Live where its competitors are still figuring out their online strategies. Most important, Microsoft is committed to breaking even on the console over its lifecycle, leaving plenty of room to profit from games, Live subscriptions, hardware peripherals, and downloads. In 2006 Microsoft will have to justify the console's high price (or lower it to put price pressure on Sony), come up with the "must have" game title that was missing at launch, and prove that early shortages and glitches are temporary and solvable problems.

"Getting to profitability will require a big-name software launch while withstanding a concentrated marketing blitz from Sony. Anything less could mean years of red ink ahead."

Matt Rosoff, lead analyst, consumer and corporate

Wow, I had no idea that Microsoft had a publicly stated deadling for when they wanted their consoles to start making a profit. What I see happening is the 360 getting a price drop and at least one stunner title (think Halo 3) in time for the PS3 to come out. If the price and timing are right they could really bite into Sony's marketshare.

10 Challenges for 2006 [Directions On Microsoft, via Slashdot]