They can easily sell Natal at a loss, they will get their money back very quickly from what they will make on Natal games. This is, after all, part of the traditional console pricing model.
stupid analysts. This isn't the traditional pricing model at all. It is the new one that has only worked with limited success for Sony. Overall the model has been horrible for them due to the huge losses posted by the PS3. Microsoft is also yet to make any money on this model (in gaming).








