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Dark_Feanor said:

They could take a $100 hit and still keep Kinect. Howerver the loud voices of NeoGaf would still caling the Kinect as a reason for price/power disparity.

The 360 bleed a lot more money for years.

They won't do another major hit like that. It doesn't make sense in the long run, especially when you're only matching the price of competition... i.e. not giving yourself a distinct edge.

X360 was $100 or more less than PS3 all the time and they made money back up in a lot of software / Live sales. Xbone does not have either luxury. It would be financial disaster to lose a lot on this.

Now they can likely make small profit from hardware and achieve price parity allowing them to focus on other incentives like entertainment options beyond gaming and/or good bundles.