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A hardware revenue drop of 20% is basically a HW drop of 20% with the prices unchanged. Could be more or less depending on XB1X vs XB1. If more people are buying XB1X now I imagine the actual HW drop is more severe.

Gamepass subs are quite good, and going with a nice netflix strategy of cheap prices early will lure in many subscribers. After a few years, they can make bank by raising the monthly price.