They dont have to brake anything. Its as simple as eating some cost. Lets say everybody asumes sony will bring the ps5 at no more than $500. Ms could just deduce what $500 could bring to the table in a console form. Then they could just build sonething for $600 and then sell it for $500 at a lost. Sony might be doing something similar and eat like $50 loss. Ms dont know that so the jump might be minimal but still enough for them to sell it at the same price. Ms knows that they cant compete with sony so im sure they will sell at a lost the anaconda just so they can have the performance crown. As the real console they plan to mas market is the scarlett. The cheap x1x replacement.
Just speculations on my part. Nothing to do with what was just anounced.
To many assumptions.
Unless MS decides to launch 6-12 months later they can't ever be assured they'll be stronger than PS5 without breaking NDAs and contracts Sony have with developers or AMD. One can say MS is more likely to have the stronger console, eat more cost, launch more expensive, etc and that is fine, but no one can assure that MS will have the most powerful HW.
duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"
Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"