Fault logic is faulty.
Live actually has a cost associated with it. They can't provide the content from various 3rd parties like ESPN and others for free. They pay for that and part of your Live membership covers that along with networking and hardware etc.
I doubt MS factors much if any of Live's retail profits into the hardware profit. Its its own category.
However 720 could be $300 depending on the hardware and how much MS is willing to risk in initial hardware losses. I'd still bet on $350 to $400.







