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Landguy said:
mutantclown said:
The more it sells, the more they lose. The percentage of market share they may gain by doing this in the short run won't justify the loss.

If only that were true...

THis early in the generation, if the gap between the systems total sales gets any bigger, M$ knows that they are done.  Like everyone comments around here a lot about, when everyone's friend has a PS4 - everyone else will want a PS4 to play all of the games with.  M$ knows this all to well.  So, they are dropping short term profit for long term viability in the console market.  If the XB1 can get to parity with the PS4 in the US, that will be a win in the long term for M$.  Of course, they will try to actually push to get a sales advantage over time in the US.  

Based on the fact that they have NOT extentended the promotions throughout the world, they have decided to not take a total loss.  

A loss is a loss. At this rate the Games Division won't ever see profit for the remainder of the Xbone's lifetime, the losses will keep piling up and no amount of game sales/live subscriptions will cover it if they barely match PS4 sales in USA. The kind of loss they're incurring can't keep up for long if the strategy doesn't pay off. This is a major desperation move from Microsoft, this is do or die. And unfortunaly for them  doing it means more than simply matching sales in one territory (albeit the major one), at these prices and throwing away blockbusters for free they MUST outsell PS4 by a significant margin AND have better software sales/subscriptions than the PS4.