Microsoft has the hammer and nails in hand...

[hanafuda]

Dryden said:

hanafuda said:
I've still yet to see anything to prove MS are making a profit on the new low price points.

I'd say that's a key point to clarify before jumping to any conclusions.

At this stage the hardware cost is moot. Live subscriptions and licensing (I believe I once read it was $7 per disc on the original XBox, I don't know the figure for the 360) will ensure the platforms profitability.

 

It's not moot, but I totally agree with your point about Live. They are getting people to pay for nothing - a fantastic business to be in. How much longer can they keep charging for it though, and what happens to their business model if Live becomes free?