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With the profit created by the Xbox business this launch quarter I believe this sets up Microsoft to be very aggressive moving forward with the Xbox One. If they see the PS4 lead start growing considerably they can easily counter with a lower price or add value with free games in the box, etc. This is what I suspected all along with the $500 price. It will end up giving them flexibility and it did not matter at launch. It may matter year 2, but the extra revenue from a $500 launch is already in the bank.



Its libraries that sell systems not a single game.