When they say 27% decline in cost of revenue for Xbox hardware does that include removal of Kinect or is that in cost of the basic Xbox one? If it includes dropping Kinect it's not all that great. The $150 retail price reduction represents a 30% drop in price, which is 3% higher than the decline in cost of revenue.
The losses for Xbox are small compared to the over all revenue and profits for MS, but it's still got to be a disappointment to be reporting losses. Clearly there is a long term approach, with Xbox profitability being aimed for next financial year. Though if they are forced into another permanent $50 price cut this year that profitability timeframe might be pushed out another year.
“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell
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