I don't want to use the word "embarrassing" but didn't they just bundle a game with the system last month. I don't understand. Why not give it time? How much are they losing per console sold? Are they losing money per console sold? What do investors think about this?

What was the original price of WiiU? Price-cuts?

What was the original price of Dreamcast? How many price-cuts?

There was some information somewhere regarding how much each console cost to make.

I think the Xbox One w/ Kinect was $471. Without would cost about $395. This is at launch however. But I doubt production costs would've dropped too significantly.

This, combined with bundling games (Publishers aren't going to give out bundle copies for free!) Microsoft is definitely losing at least some money on each console sale. Other than the 1TB CoD bundle. They'll have to rely on software royalties on future purchases, and get some stable income from XBLG subscriptions.

Xbox always has great deals for the holidays. Always. Regardless of what happened during the year

Yeah...  With no die shrink, no cost saving revision, the price of DDR3 actually increasing since launch, and the fact that they were going to lowering production means their is a chance that the cost per unit went up.  This isn't really a worry for Xbox fan's though as it appears that Microsoft's prime concern is saving face at the moment.

I honestly think they are probably taking a slight loss at $399.99 right now with no packins.

The PS4 is getting dangerously close to critical mass. Attacking now is necessary, as waiting just gets you more and more behind. Being passive is asking to be buried by a snowball effect. Besides, the Xbox One might never again have an edge in released exclusives.

Why does it matter? If any of the three companies can suffer from a loss, it's MS.
You make it sound like a price-cut is a bad thing? The only thing that could be bad about the situation was if MS wasn't being competitive.

Of course MS can take the loss. But they're not in the console business to "win". They're in it to make money. It doesn't matter if Xbox One sells 10 trillion copies if it won't make money.

Yeah I think they are making a loss at that price. I'm not sure how much but they must be making a loss and I don't expect the Xbox Live revenue to make up for the loss either.

Yup, and its more important than ever for Xbox to be profitable. More losses will make the shareholders angry. 

Is this the first generation we don't anticipate losses?

The 360 and PS3 lost billions for various reasons for the first few years. I imagine the goal is to make it back down the road.