Perhaps they will release a diskless/kinectless based console, that could help them reduce the cost. Some people out there want a digital only device, it might be a way for them to provide one at a very cost effective price.

LoL, what a shitty article

No, the Xbox One hardware is profitable at launch, the profit is a small one though.

http://news.cnet.com/8301-10805_3-57613758-75/microsoft-squeezes-little-profit-out-of-each-xbox-one/
http://www.gamesindustry.biz/articles/2013-09-05-xbox-one-will-be-break-even-or-profit-making-from-launch
http://www.slightlyqualified.com/microsoft-claims-xbox-one-will-be-break-even-or-profitable-on-launch

The consoles still make money on each one sold.  Just because microsoft already spent money developing the consoles doesnt change that.  

Right. In accounting, R&D costs are considered "indirect" costs and are not allocated to the cost per unit.

Sega was in a very different situation.  They couldnt afford to loss lead with their hardware.  Look at how quickly sony dropped the price of the ps3 or how quickly microsoft dropped the price of the original xbox.  The companies invloved in the game business today have deeper pockets that can help prop up a loss leading device for long term benefit.

Agreed. Wii U will pick up steam once they release a couple more exclusive games and once they realise that they shouldn't care about multiplats from 3rd parties, instead moneyhatting exclusive games like they did with Bayo2 or W101. This is the only way to go for them, cause nobody cares about multiplats on such inferior hardware.

A price cut is mandatory as well, it goes without saying. I'll buy a Wii U the moment I find it for 200 Euro.

All in all, I'm much more worried about my beloved Vita, than about Wii U.

OT: I think MS is gonna have a tough call on its hands. They will be totally dominated by PS4 on one hand, but the shareholders are more and more vocal about selling the whole Xbox brand, so they may be very reluctant to dropping the price and losing even more money.

I don't think investors would appreciate to see X1 sold at loss when the device division is already under critiscism, but it would be cool for us gamers =D

(Anyway it's Pachter, chances of him being right are like 5%)

Agreed. I think the new MS CEO will either do something to royally piss off Xbox gamers or the board of directors with the Xbox One. I think the former will happen.

MS's position with Xbox is a textbook case of how you can break off units of the company to unlock shareholder value. I fully expect MS to make a strategic divestiture by spinning of Xbox into a separate company -- a joint venture made with an electronics company and/or cable provider. It will look good on paper, but will royally screw over Xbox owners with higher fees for Xbox Live + fees for playing a used game + fees for items and DLC all under the guise of "microtransactions".

Microsoft doesn't like to be behind Sony. They came into the industry to throw Sony off their hinges, not to take risks in truly taking over the living room. They'll throw out the Kinect if worse comes to worse to get back into the fight with Sony. Look what they did in Europe once they heard about Sony's preorders. They gave everyone of the day one Xbox One owners free Fifa 14. If you haven't noticed how Microsoft has been reacting to everything Sony does since February 2013 you've been ignoring a couple things. What Sony does matters. If it wasn't for Sony most Xbox owners would have to accept that they had to play a DRM locked console.

Ah, whatever :D

I was wrong. Didn't read the article right, they make a couple dollars on each console.