Obviously MS does not need this deal to have a successful launch. The main buyers will be the hardcore followers for the first several months.
But after that, I expect to see MS roll out this plan to compete with the lower priced PS4. Either that or introduce a price cut in the first year. The amount of profits they are making at $499 has to be quite large and beneficial to their company, so I suppose any price reduction or subsidized method will rely on customer demand. It is starts to slow down, I think that will be their go-to plan.
What do you think?