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Darwinianevolution said:
I'm just wondering if they are having problems choosing their priorities: their home consoles or their new cloud-based platforms. No matter how it's spun, they eat into each other's markets and in house resources.

I think MS has made it clear that GamePass/xCloud is where they see their future.  With Scarlett, I think they are just seeing if it is financially beneficial to release more HW, not worrying about units sold, but profit.  This is why I doubt MS is going to be subsidizing the cost of Scarlett.  At most, I think they will try to break even, maybe take a small loss, covered by the sale of a single game.  It might be a case of figuring out what they can throw in there to match Sony, without having to sell it for more than $499. 

On the other hand, with the way Sony is talking, I wouldn't be surprised to see them subsidize the price by $100-$200.