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Not sure MS matching a price cut would be the best strategy. It's not going to help them gain any ground that an improved software line up wouldn't and would only result in being a loss per unit leader.

If the PS4 drops to $350, the best course is probably to offer excellent holiday bundles and hold off on any future price cuts until MS engineers can redesign a new model with a greatly reduced BoM to cancel out/reduce losses per unit.

I want to say that the current BoM per unit is likely around $300, but frankly, I stopped tracking these things once market percentages settled in on the 8th gen and I really don't have any vested interest in whether MS is currently making a profit, breaking even, or posting losses on each unit sold.