Sony made massive losses on the PS3 subsidizing the console, this latest price by Microsoft is hardly the same scenario.

They probably breaking even or taking a slight a small lose that will be recovered once said console owner buy accessories and software.

People sometimes negate the benefits of dominating the market. It doesn't give you money just because you sell more, it gives you the influence to get advantages that will make you sell more and the competitors sell less: exclusive 3rd party games, timed exclusivity and so on.

The attach rate for games with the Xbox One is very good. Any lost revenue on the Xbox One itself im sure is made up for in software and accessories sales.

Also, let me add a big thank you to Microsoft for making this price drop happen. Now everyone can experience true happiness with Xbox One for the low price of $349. Thank you Microsoft. We are humbled.

No satya nadella has said theyre in Xbox because they want to win gaming.  Microsoft isn't a company that is satisfied with second place.

Anyone else find these threads funny?

It's like a homeless guy worried about Brad Pitt losing money on a restaurant venture. Brad and Angelina are going to OK, don't worry, lol.

MS makes *billions* in profit every year, and will make *billions* in profit next year no matter what the XBox division does. MS can afford to take a temporary loss on the XB1 if they want to. This is the same company that spent like $7 billion buying Skype. 

Sony is the one that hasn't made even a dime in the last 7 years and is bleeding money like it's going out of style overall. Worry about them.

I think Microsoft is trying to really get the ball rolling whilst they are ahead on exclusives. Their lineup this year outclasses ps4's threefold. If they wait any longer ps4 will be an unstoppable majority. The loss-leader tactics are brilliant long term investments for the company, so shareholders are happy. Now May be the only opportunity that xbox has got.

They must be taking a loss with each console sold. Yet after tons of price cuts, free games and promotions, the Xbox One still can't beat the PS4. I doubt this holiday will be any different. Microsoft needs to accept that they are going to be in 2nd place and try to maximize profits. I can't imagine them doing another price cut next year before the PS4, it would just be ridiculous.

Why so defensive? No one is accusing Microsoft of going bankrupt. This is strictly about Xbox One and how much of a loss Microsoft is willing to take in trying to play catch-up to the PS4.(emphasis on trying)

MS can take a very large loss if they really cared to. If they really wanted to they could take a giant dump on Sony and buy out several key third party games and win this generation. If they *really* wanted to. This cut is maybe giving them a $20-$30 loss per unit in the USA ... that's nothing but peanuts for MS. 

In fact I called this price cut way beforehand. They were always going to go for it simply because they can afford to.