I’m not sure about the price being that high but if Microsoft continues to make hardware then I do see it being released at higher profit margins. If you can’t win marketshare then you need to make sure your hardware is profitable.
However, I don’t see hardware being the main focus for Microsoft going forward. Between pushing Game Pass, purchasing Activision & Bethesda, releasing their games on Sony/Nintendo devices and “This is an Xbox” marketing, it’s pretty clear that they are transitioning to a future not dependent on hardware and instead getting their software & services on as many devices as possible.
They can and likely will continue to make hardware but it has to be profitable and act as an extra revenue stream rather than being the main focus of the division. Games & services is going to be the focus.
When the herd loses its way, the shepard must kill the bull that leads them astray.
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