The Xbox One beat the PS4 in November, but at what cost? We do the math

[jacks81x]

MoHasanie said:

S.T.A.G.E. said:

MS can afford it so its not really  that big of a deal right now.  This is all being done for show. If they were to keep it up it would become a problem. They'll go back to $400 in overall price and if Sony continues to wreck them they'll drop the price again between June-september. Its obvious that this isnt about profit because the Xbox One had been selling very well. Its just that when Sony sells well its on another level. MS had to devalue their console in the first year just to catch up to what Sony naturally sells at $400.

MS can easily afford it but with a new CEO in charge, and one who thinks "Xbox is not a core part of Microsoft", he might not be willing to keep a division which barely makes money. 

Also, each division within the company has its own budget and projections for the year.  So just because the parent company can afford it, it doesn't mean the XBox division can just spend whatever they want.   That's true for any big company, institutions, schools, etc.