If expected revenue > or = cost with a $400 price tag, no price cut.
If expected revenue > or = cost with $350 price tag, $50 price cut can be expected.
If expected revenue > or = cost with $300 price tag, $100 price cut expected.
They have 3 options here.
1. Growth.
2. Restructure.
3. Closure.
Losses is 2005/2006/2007/2008 are irrellevent. Thats the price they pay for trying to win a format war. Just as the losses for the Xbox 1 are null when considering the Xbox. 360. Therefore they have to consider the position they are in now. If revenues from software, services, hardware and third party royalties are greater than their costs at different price points their best course of action is to act to cut the price. It is the only long term solution which sustains the division as it currently exists.
Tease.
