Xbox One back at $349 from tomorrow!

[jlmurph2]

Greenbeans said:

jlmurph2 said:

Greenbeans said:
Selling the console for less than it costs to make is called falling into a money pit. Businesses like Microsoft with many other profitable branches eventually get rid of money pits.

If they lose 20 bucks for every console, that's 20 million dollars not in their pocket.

Businesses, even ones worth billions, don't want to be without that 20 million.

Or they don't sell as many consoles as they will now and make less money and lose marketshare. 1 is a better situation.

You don't understand that they're making a loss. Selling a million consoles with $50 profit is more than selling 10,000,000 with a $20 loss. 

1. +50,000,000 dollars. 

2. -200,000,000 dollars. 

 

Simple math. 

They appreciate marketshare more than hardware profit. The more hardware sold = the more software/subscriptions/accessories sold.