| kowenicki said: desperation is when you continue to sell your console at a loss to gain market share and save face..... |
This. Theres no proof right now that MS is losing money on the 360 based on the last few quarters. Depending on how much Natal costs them, and if a $100 Arcade would really generate a loss (Maybe MS worked out a deal with Wal-Mart or Amazon to minimize losses on the $100 gift card part). If MS continues to profit the way they have done the last two years they will actually begin to profit on the 360 as a company whole by late 2010 / early to middle 2011. If they can afford to make the arcade $100 without any losses (remember they make money on every new 360 game sold, overpriced accessories and the sale of Live and Live marketplace products) then it would be a smart move by MS to make the arcade $100.
Oh and what I mean by overall profit on the 360 is MS eliminates the cost of RROD and the first two years of loss overall by constant profit. They still have a billion or so to go I believe. But the last quarter they made 400+million so they only have a few quarters left to go in that case.
It's just that simple.
