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Wow, that's as simplistic math as it gets. At first, assuming that they still haven't lowered manufacturing costs by a single cent from the start.  Also, not even considering that the price drop acted as an informal advertisement, giving them exposure in the media as well as in store promotion newsletters, which would not have happened otherwise, thus forcing them to spend extra on marketing.

Sure, MS incurred some losses from the promotion, but nowhere near $63 million. But also, I am sure most of those losses were recouped day one from new XBL signups and extra games/accessories purchased.