There's no need to lose all that money. A powerful and feature-rich console for tech enthusiasts and power whores can sell a few million units also at a higher price, in its first months after launch, particularly if these months include Xmas. Price can be cut later, when costs become lower. Sure, price must not be too high, but the first sweet spot is having an entry level unit within $400 at launch, and possibly a premium unit too priced higher and hopefully selling at little or no loss at all. BTW there's no need to lose too much money, as so much time passed since 7th gen launch that even mid-low-range late 2013-early 2014 HW will offer at least 4x performances compared to PS3 and XB360. This puts MS and Sony in a good position, as at least on the HW front the price of their new consoles will be perceived as justified, so the aspects they must focus on are game libraries and marketing.







