Here's the thing...I think MS understands that this is a very crucial point in time for the system, and it needs to keep itself in the news and doing things. I think that they are willing to drop price...very willing. The question is, do they want to simply take the hit, and keep the system the way the gamers want it? It's questionable how well a simple price-cut will improve sales.
On the other hand, they could leverage that price-cut with some cut-backs.
There's only two things that could go. The tray or the kinect.
Kinect would help them save on much more of the cost, but then it would STILL be an underpowered console for the same price as the competitor...
And removing kinect would remove a lot of the "value" that consumers see in it. I mean, even myself, I kinda like kinect. I think it makes sense...just not 500$ of sense.

IF they could somehow market it in such a way that the tray loss was negligible, and gave them a foundation to introduce new revenue streams...well, I would take that option if I were MS.

It seen like a anti xbox thread to me also since releasing a drive less console wouldn't make much sene anytime soon. 

This is an anti-xbox thread?

No, if it was an anti-xbox thread, I'd be mocking it. See my thread called "are ps4 owners really paying 100$ less for more power", to see what an anti xbox thread looks like.

This is a strategy thread.
You may think it's stupid, but I have a pretty good track record with my predictions.
I usually come close to the end result.

In fact, I made a prediction on what the next playstation should be back in 2010 or 2011, and it turned out to be what the next xbox was.

yeah, but I think microsoft will just eat the cost of price cuts in the first few years.  This gen is slightly different in that all the hardware isn't starting out as loss leading, so there is room to just cut the price and lose a little.  I think new models that may cut some features be more of a mid gen thing.  We will see though...

Because you don't understand the market.

On the other hand, I can see where this would be a good thing. I can see this being a good move. I would buy an xbox like this, depending on how much freedom I have with my digital purchases.

Yes. I would buy an x1 for 400$ and control over my digital purchases with kinect....and I think there are a massive amount of people who would as well.

Not that they can't afford it, but the problem with this is that it doesn't actually do all that much to strengthen the brand or create new revenue streams. It only takes bricks out of the jenga tower.

You don't understand the market either seeing that over 95% of the population does not have or does not have access to fast enough internet speeds in order for a driveless console to make sense.  Also it would make even less sense in X1 main market the US due to data caps.

well, its not like they can't do the digital distribution with blu ray drive in it.  They can experiment with digital distribution and drm sharing schemes with the blu ray drive still in it.  Then, by the time they are ready to introduce a disc less model in a few years they could have their digital model down and consumers will be used to it.  They can strengthen the brand just fine without introducing new hardware.  Software upgrades have proven to be very effective for 360 for example.  

You must have Verizon FIOS or Google fiber then for the majority of the US it wouldn't make sense since they don't have access to fast enough internet and even to a good amount of people that do have fast enough internet it wouldn't make sense due to data caps.

No disc drive would be dumb as hell. PSPGo all over again. No way does a majority of the country have fast enough Internets to download these games. Would be appealing to only the smallest of a minority. And until that day comes, no thanks. I welcome the arrival of DD only and an ecosystem like the PC market has, but the console world is not ready for that.