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It'll be harder for MS to continue dropping the price in the future as DDR3 RAM, eSRAM, and other customized silicon inside the Xbone continue to increase in price.

The only realistic strategy they have is to lose tens of billions of dollars this generation in order to stop as many 360 owners from switching to the PlayStation camp. There is no way that they will ever sell close to PS4, and Microsoft knows this. They need to retain as many people as possible (I'd say 40m LTD is a realistic possibility if they decide to lose $20 billion in total through more firesale deals) and then not screw up next generation.
Make a powerful Xbox TWO with no gimmicks.

My guess is that they will abandon Xbone support in 2-3 years time.