Doubt Microsoft are reducing their profit by 3%, more likely they are increasing their hardware loss by 3%, so that more people buy the console. If more people buy the console, more people buy games, and that is where the money comes from on consoles. Making it to a 65nm process may instill more confidence in it's reliability, possibly increasing sales as well
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XBox Pricing
Doubt Microsoft are reducing their profit by 3%, more likely they are increasing their hardware loss by 3%, so that more people buy the console. If more people buy the console, more people buy games, and that is where the money comes from on consoles. Making it to a 65nm process may instill more confidence in it's reliability, possibly increasing sales as well