Of course, if it is not a closed platform and has other store fronts there's no way it will be subsidized as MS will have no guarantee of income from software, so they will have to at the very least sell the product at break even, but most likely they will sell hardware for a profit. It will be more like a prebuilt PC than a traditional console.
Along with comments of it being the "largest technical leap for a generation" (it won't be, but they'll justify this comment with AI), if they're aiming for a powerful machine even $650 is too low. It wouldn't surprise me at all to see $799 or higher for their next console.
It will be a more niche product, and probably they will release lots of Xbox branded hardware, it's not just going to be one console for 6-8 years like the past. There'll be a range of products from MS that are prebuilt pc's, they may use the "Xbox PC" branding they've been putting on game trailers recently for this line-up of devices.
