This will only be viewed as desperate if customers would go woah MS may be getting out of the console business if this doesn't work. In other words it wont. After all PS3 dropped $100 per year the first 3 years of its life. People didn't then go woah Sony is in dire straights this could be a bad purchase. So enough with the drama and the use of the word desperate.
Also if you are going to even think about MS losing money on Xbox you really need to check the SEC filings. Just last week MS put out 1st qtr FY2015 reports and it was another profitable quarter for Game Hardware sector of the business and Game Software sector of the business. It has been years since division with Xbox has had a loss.
Its libraries that sell systems not a single game.
