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Captain_Tom said:

They simply cannot afford to throw away all of that R&D and sell the console at a $100 loss because it would bring the Xbox debt past 5 Billion dollars once again for no reason other than to say they sold more!

They're not going to have a choice, either they acknowledged they fucked up with the Kinect and drop it, or they kiss all their gains in the market goodbye, it's really that simple.

It's a competitive industry, if Microsoft keeps trying to rest on their laurels to catch up on profit and act like the competition isn't still gunning full throttle, they're going to get left behind.