Update: Xbox One will not support Xbox 360 wireless controllers or accessories, currently do not have specifics on wired devices
At least for the 360, Microsoft was taking a loss with every console sold for a long time. They make their money back on accessories. That's why a 120 GB hard drive for XBox is like 10x more than a regular HDD. So it's no surprise. You gotta buy new controllers so MS gets their $ back. All this means is modders are licking their chops.

"While you injure me... you dance but in the mirror." - image gallery featuring bizarre win quotes from throughout fighting game history
#japan

Jojo's Bizarre Adventure HD, Virtua Fighter 5 Final Showdown and more 50% - 67% off on Xbox Live Marketplace beginning March 5
Since there seems to be some confusion about VF5. According to Major Nelson's blog: VF5 is available for download via Games on Demand on sale until March 4th for $4.99. This is essentially a downloadable version of the 2007(?) retail release of Version C. VF5: Final Showdown (the downloadable full VF5 update released last summer on XBLA) will be on sale beginning March 5th, for 400 MS Points ($5).