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OfficerRaichu15 said:
Im still wondering I mean this is great for anyone who wants to buy an xbox one
but they must be loosing tons of money with over a $150 pricecut in a little over a year


$500 included Kinect.
$400 no Kinect included.
$350 no Kinect included.

The more units sold, the cheaper production becomes.  The longer production is limited because of sales, the longer the cost per unit remains high vs. the retail price.  The reason for making a product profitable out of the gate is increased profitability later on, and or better bundling/price options later on. 

Microsoft knows it'll make a profit on the Xbox One at some point, but they're sacrficing it in the short-term for the long-term.  By increasing sales, they decrease the unit cost, making profitability easier to obtain.  Keep in mind that they lost more money last generation on every Xbox 360 on day one then they've likely lost because of the $350 price point on the Xbox One this holiday season.  The Xbox 360 was priced at a loss.  The Xbox One was priced for profitability.