The idea that MS will just massively subsidize the console is pure fantasy.
Inverse correlation of price to sales is obvious, so if MS was willing to do so, they could have done so from day 1.
Fact is, it was long known that both Sony and MS were less willing to subsidize consoles this generation.
The flip side to that is a shorter generation becomes viable when years of sales aren't needed to recoup early gen subsidization costs.
So even if MS were to subsidize more to somehow make up for their product having less inherent demand,
Sony would be heading to a nextgen sooner, and thus sabotaging MS' ability to recoup early gen subsidization.







