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thismeintiel said:
trunkswd said:

Microsoft is likely more willing to take a loss. PlayStation is where Sony gets a lot of its revenue and profits from, while Xbox is rather small when compared to other divisions at Microsoft. 

If anything, history shows that Sony is the one willing to take the loss, not MS.  Even just as recently as this gen, MS wouldn't drop the price of the XBO, even though the $499 price was killing it, until they could get BOM to a point where they were breaking even without the Kinect.  Then, they could have ended this gen with a bang with a $399 XBO X, but chose not to lose money on the HW.  Xbox is just not as important to MS as PS is to Sony.  Sony NEEDS PS5 to succeed, even if it means taking a hit at the beginning.  MS could just drop Xbox HW tomorrow and not bat an eye.

No, they couldn't. 399$ XBO X wouldn't really have changed that much for how this gen ended up. It was already too late for MS to win some significant marketshare back by having a price parity with Sony on a niche mid gen refresh side. They could have made some great critically acclaimed first party games instead and it would have made even more difference than selling this niche console for 399$.