No they haven't, they have directly specified consoles haven't made actual profit as in, in the green (As the 360 was profitable a few years in but didn't quite make back the money put into it, especially with RROD put on time their spending) selling consoles at a loss is normal, even Sony does it with thin margins.
They are clearly not talking about Xbox outside of the hardware itself.
Xbox is also not putting their FP games on PS or Nintendo. If that was the case they would have already pivoted to that during the 2-3 year period before Phil convinced Nadella to integrate gaming more into the company. Right now MS is doing nothing different than what Sony had recently been doing at double the pace. Only difference being MS has gamepass while Sony is trying to integrate PS+ into other devices.