So, the console wont sell simply due to the price. Its really that simple. But the thing is... I don't think Microsoft wants to sell Xbox. They want to be in the software business. They don't want to be in the hardware business. In their perfect world. They let Sony, Nintendo and PC vendors produce the hardware and they produce the software. Remember the only reason Xbox exists is because Sony would let Microsoft put Windows on the PS2. Now it comes down to increasing subsidy costs mixed with a mandate for 30% profit margins. Going into next gen, its quite possible that the Xbox PC will be prices 30% above costs. Thats huge. Thats how you get to $1200-$1500.







