giving the console away is a $500 dollar loss right there, not to mention that retailers make guaranteed profit from console sales, while giving away a console doesn't ensure that they will get software sales for it, especially with the push to digital distribution, If you pay a 2 year subscription with that, thats 90$ at full retail, but thats already 2 years after the purchase, before one would need to pay again.
Lets say they do this with 500,000 xboxes ones which they probably already have out in retailers.
thats about 480$ of loss per console, so they would lose 205 million. Furthermore, with XBL it would take 9 years to recoup that loss alone. Meanwhile, Microsoft would have to manufacturer more consoles to meet demand and then those consoles would add to the ever increasing debt.
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