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EricHiggin said:

PS and Sony don't have the backing or the want to try and subsidize again just in case, and I don't blame them either. As long as constant upgrades with reasonable trade in's exist, there's no problem with selling at cost, or even a small profit. Why MS doesn't just subsidize PS into the ground I don't know. They have the means to do so and quite quickly. They would have the performance console market to themselves afterwards, unless Apple or Samsung decided to jump into the ring. I don't want MS to price/push PS out of console gaming, but everyone knows if they really wanted to, they could. Makes me wonder whether XB is mostly a warning to PS to stay away from their Windows/PC market. 

Lol...... ok lets see. Sony and MS sell a $400 console. That in truth costs them $420 to build. Sony sells theirs for $400. MS sells theirs for $100 and takes a hit of $320 on each unit sold because they have money.

If MS sold 20M of those consoles, they would have lost $6.4B. thats billion. And we are just talking about what they lost on the console sale. Not even what they have lost on R&D, marketing...etc cause at that point everything xbox related will just be a loss.

And no company gets into anything just to lose money.