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Mr Puggsly said:
Well if I was MS, take a loss to have a significant performance edge.

I think they should aim for an advantage, but something Phil said at GAME 15 stuck with me.  He said "I need to make the Xbox profitable in order to make sure Xbox sticks arond".  Microsoft has shown us resently that they will not continue to absorb loses just because they can (see their smartphone line).   Be modet and effective with your decision making.  When the Xbox One launched, it costs more than a PS4.   They should try to keep loses to $50 or less because what we see right now is a console cycle that demands new R$D and refreshes much more frequently.  You need to get to profit as soon as possible in this climate.   The second issue is that you don't want to be so much more expensive then Sony that they can price you right out.   We are enteirng a stage where the diminishing returns on performance are falling of a cliff.   A master stroke would be a system that is at parity with the Neo, but allow you to upgrade the console at your own choosing.  A modular console if you will.  Shift the cost of going all out to the consumer in the same vain as PC rig building.