Microsoft will keep the price down and might even LOWER it. THEY can afford it.
And don't forget: XBox is just a part of a much bigger strategy. Microsoft knows that consoles days are numbered.
Consoles today are just "appliance PCs" for gaming. Nothing fancy nor rocket science. Anybody can and will come up with similar designs within the next 2-3 years...
... but with TRUE NEXT-GEN hardware. Based on GPUs with on-chip GDDR those "consoles" will run circles even around the PS4.
Microsoft is preparing to move to a (free !!) Windows "XBox-Edition" were they will make money from the build in Game-Store.
It will be a tough battle as this is going to compete with Steam on the PC side and Android on the set-top box side. But Microsoft can't afford loose this like they did on mobile...
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