MS may have lost a decent amount of cash that in the over all picture isn't much of a hit to them. But it's an awful lot less then the planned income when they were making the console. They would have been hoping to shift that number at launch price and not as many games included. As the article pointed out they had to shift all that stock lying around and if they didn't it would really affect the production going forward.
Good move by MS but really the only option they had. (good option at least)







