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MS knows they will have no problem selling the X1 at $500 for the launch and first 6 months at least. So they went with a price that will allow them profit from the start. Kinect doesn't cost $100 to make. In some ways the new Kinect is less costly then the original (no motors). So looks to me MS is in better position to lower price for when more cost conscious shoppers look to buy. I expect next year at this time X1 and PS4 to be much closer in price and MS to be more profitable.



Its libraries that sell systems not a single game.