Landguy said:
Not sure if they are really losing on them or not or atleast not much. I was thinking that both Sony and M$ were in the profit zone by $50 or more at the $399 price point. It doesn't say that anywhere on the net, just my opinion. I was also thinking that it may be more than that by $30-50. I think M$ just wrote off the cost of Kinect 2.0 and moved on. By just ignoring the money invested, the cost to produce the system would go down along with the actual cost of not including it. The truth is that we will never really know. M$ clearly decided that if they didn't get mindshare and actual market share in the US this holiday, they would be so far gone that this gen would have been a total loss. So, even if they are losing $20-$50 per unit at the pint of sale, they can make that back with a XBL sub/renewal or a few games purchased. Also, M$ is really looking for a whole home ecosystem with the launch of Windows 10(which is excellent) next year, a new Windows 10 compatible phone OS and a system update next year that makes the XB1 Windows 10 compatible. It's a long view for them. THey don't mind losing the Console War, but they are more concerned about being blown out the door like what was happening. |
Your right we don't have any real proof but I just have a hard time seeing MS drop another $70 and still be making money + free games and still making money just don't see how they could possibly do that. If that's the case they should have dropped to $350 already.
I think MS realizes the domino effect that's happening here. It's like I saw someone say before people buy the consoles their friends have so if all your friends get the PS4 then you will to. So I think MS is hoping to get as many kids as they can get this holiday season since that's what a lot of kids will want and then later on those kids friends will also get an X1 so they can play together. The holiday time is the best time to lose money like this because it can pay off later once the price goes back up and those kids friends buy the system when they can. Also holidays are the times when parents are buying consoles for their children so that also helps.