Lots of people have attributed the positives Sony entered this gen with, to the mistakes they made with PS3. Not neccessarily good for the company, but good for gamers. No logical reason Xbox fans cannot think the same way. Why should we really care if (according to Pachter) MS might end up with 1 billion less at the end of this gen than (according to Pachter) they'd have otherwise accumulated? If that means aggressive price cutting, snagging exclusive content, or in the cases of DR3/Titanfall outright funding games that wouldn't exist otherwise, why wouldn't gamers be ok with that? It's not as if it will ruin MS. That type of loss might lead to Sony to the pawn shop with buildings and games and jobs, but MS can take that hit.

Especially since, again, this isn't REAL MONEY or a REAL LOSS. It is the most ridiculed analyst projecting what he thinks MS will miss out on over the course of the entire generation. Like anyone can possibly know that lol.

Pfft. $1 billion is pocket change to MS.

Not a huge deal to MS as an entire company. Really bad for the Xbox division.

Except we have financial reports that show the One has not "cost them 1 billion dollars". So I am able to say it most certainly has not cost them that much. It is different for someone to say that their decisions 6 months into a ocnsole will end up costing them 1 billion dollars in lost profit because it literally impossible to know that.

And also i dont have a two year old, i was using an exagerated example with a 2 year old niece, but your attempt to discredit my assumed parenting skills has earned you a nice shiny report.

Your defensive posture and passive aggressive sony trolling is confusing me. The majority of posters here are commenting on the fact this is Pachter and not MSFT making an official declaration regarding their funds. 

MSFT knows exactly what theyre doing financially as evidenced by every single quarterly report they release (imo, id better flag it as imo because no one in 2014 can understand subjective comments as being that without declaration), however this entire premise is built on Pachter and not actual figures.

Hypothetically you, Pachter and everyone here have NO IDEA what it will A) cost MSFT (if anything) and B) What they are willing to tolerate or handle in regards to the overall picture.

MSFT isnt as successful as they are because they waste money, this is what people assume about rich people and companies that are successful. They get that way due to exceeding at management and big picture. Rich people dont over tip because they "have the money". This idea is what drives companies into the ground.

MSFT had a vision with the Xbox brand that turned profitable (Gold, exclusives, US domination and relevent in EU) and would have been immensely more profitable if RROD hadnt happened, their vision was realized theoretically. Time will tell if they feel confident enough in taking over the living room via the Xbox brand to sink hypothetical money into it to make it last.

Class. Do we need to go over the difference between a projected loss and an actual loss?
;)

And also who is reporting the projected loss. Pachter is extrapolating 2 million "lost sales" through an entire generation of purcheses to get his number. all he is saying is "gamers on avg spend X amount and if we multiply that by 2 million we get 1 billion" Which is beyond ridiculous for a number of reasons.

This isnt even a projected loss. Its a Pachjected loss which is even less reliable.

How are they loosing money?
They are selling consoles and that's how they make money.
Now that kinect is not needed they can make more money.
I heard the kinect itself costs more to produce than the console alone.

Manufacturing contracts are typically for a long time, im not an expert, MS would have to pay the exact same amount for the XB1 manufactuer with or without the Kinect. They are either stockpiling them, costs money, packaging them and selling them seperatly, costs money, or manufactuering the old skus and then repurposing a portion of them into Kinectless bundles, cost money.

But now they dont need to spend money for kinect since it isn't being bundled anymore. They will still keep producing more kinect devices but at a lower quantity. I am trying to find that article that says kinect costs more to make than the console. Dunno if its true though