Usually companies lose money the year the console is released, as parts are expensive and production hasn't been streamlined, plus there aren't almost any games out where they get their chunk in royalties (this is for Xbox or Playstation, no matter). Remember consoles pretty much keep the same internal architecture for years, so just as a particular video card can be $300 today but $200 next year and $100 the following, so do consoles get cheaper and cheaper to make.
Having said that, Microsoft original errors cost them their first lap in the race. First, the price... $100 more expensive than the PS4. Second, their original stance in that the console had to be 'always-online' for you to play games. People flocked to preorder the PS4 when they announced that. They later stepped back on that, but the damage was done.
As far as games go, still too early for both consoles, nothing 'must have'. MS was hoping Titanfall would be the must-have title, but it fell well short of expectations.