Apples and Oranges really (Pun sort of intented). The iPhones are not really breaking records in markets without 3G and 4G networks. Most of the big sales come from developed markets or rich emerging markets (China, Brazil and parts of India). 

If you really think that ignoring a large subset of people who are prospective customers would be good strategy for launching a console that would serve as Microsoft/Sony's entertainment centre till the year 2018-2020 is selective strategy or thinking. Than i guess i am wrong. Even PC gaming allows an offline mode and it is the most connected as far as internet connectivity is concerned. 

The phone market is a lot bigger than the console market, yet Apple is successfull while ignoring part of the market.

Apple sold 48  millions of Iphone last quarter.......

I think it's safe to say that you can apply the same strategy and only target core rich markets and be successfull too with a console.( and yes, those rural US markets with no internet are not the markets where the richest segment of the population concentrates...).

I'm not saying it's cool or not, but from a business point of view it makes totally sense...

Bottom line is when you're selling an entertainment device you want to target the segment of the population with high disposable income...

And finally lets not forget that from all accounts the majority of Microsoft XBoX profits come from XBoxLive Gold subscription. So why should Microsoft work hard to provide a console for people that won't in the end get Xbox Live ?????????

I am sorry but i just disagree. One has to go target the lowest common denominator when making a dedicated gaming device. Otherwise the market is theoretically shrinking because of other distraction (smartphones, tablets). One of the reasons i am saying you can't just copy Apple's cell phone strategy is because game consoles just don't work that way. An iphone can be sold for $600-900. Sony on the other hand lauched a console for $599 which cost them almost $1000 to build but it was not seen a bargain from consumers. 

We are moving away from the topic here though. The idea is that market and consumer perception is not ready for always on internet devices. Even people with internet have those momentary blackouts in service. This would just affect the paying consumer just like drm on pc only hurts the people who paid for the product. The pirates crack even the hardest one within a week. 

... and no sales.

Is whats missing in the title.

Good news for Nintendo, if true...

Didn't Sony already patent a technology that blocks 2nd hand games? How could MS do that if Sony owns the patent? I smell patent infringement! =D

To be honest, I think I bought 1 game used out of like 25 last gen. I'd rather throw another 10-20 bucks towards the retail cost, to let the devs/publishers know that there's a demand the types of games I'm interested in.

I doubt it. If this is true, Sony wins next gen.

And what exactly is the benefit in targeting customers that will not spend heavilly on your games and services when you are selling the console itself at a loss ?

Loosing more money ?

Wow.....I hope they do it..just so developers and publishers realize how fuckin stupid of an idea this is. The only way this could be even remotely successful is if Xbox 720 games were $20.00 cheaper than the competition. I really hope SONY isn't stupid enough to try and implement a move like this on their side of things.

Is this Edge's WishList or something?
What odd people they have working there...