What exactly would they lose though? You people are so into units sold that ou are ignoring what is importnt,making a profit.Sony is making a profit from the PS4 while MS is not making a profit with the X1.Sacrificing profit just to sell more units is not a smart move and hurts the gaming division.That is why investors want MS to sell the Xbox brand now.They are basically giving away the X1 so that is not winning or competiting.Sega did the samething with the Dreamcast and it failed.

All this unless this unless that.People said the same thing when Titanfall came out,during the $399 console and when MS just did that $50 promotion last month.Sony still stomped on them and Nov,Dec will be no different.I think they know more about what they need to do than someone who posts on an internet forum lol.

Nov - Sony....walk in the park
Dec - Sony to offer surprise $75 price cut......Sony outsell Microsoft by 3or4 to 1 in the US.

I see Sony reacting with equal value. $399 with a free game and PS+ or $399 with 2 free games. There is no way in hell Sony or Nintendo is going into the holidays without some kind of deal for the western markets. The anticipated lead console holiday increase should allow the PS4 to continue to steamroll the XBO deal regardless of Sony's reaction.

Hardware profits are typically not much, they usually make the bulk from peripherals, software (games) and DLC. XBL/PSN subs also represent another revenue stream.  So, getting the console into homes at a small loss, is probably a good idea if you get a healthy boost in sales.

Well Sony has no problem doing that and anyone who buys an X1 is not buying it over the PS4 as they most likely already have a PS4. MS is the one fighting an uphill battle.The money is lost from the cost of development and they will lose a lot and keep bleeding no matter how many units that put into homes.Look at the 360.Sold a lot,but made no profit.Also the people who buy it may not keep it or don't use it because they have a PS4.Why play games on X1 other than a few exclusives if the game is also on the PS4?

That's why I said if you look outside Destiny month, a game heavily associated with PS4 and bundled.

Nah, it's likely that both MS and Sony have already reduced the BoM costs for both machines, and if I'm not mistaken, isuppli put the PS4's BoM at $381, and the XB1's at $471 (I'm not mistaken, I looked it up, hence the exact figures hehe).  So, they were both profitable (albeit by a slim margin) from day 1.  This gen was never a repeat of the PS3, where Sony was losing ~$241.35-$306.85 per machine sold, at launch.  So, both companies can certainly afford to drop the prices a bit, esp. to entice consumers for the holiday rush.

Everyone said the same thing with the Titanfall bundle and look how that turned out.

Don't count Sony out. Remember that this price cut is Microsofts reaction to Sony. Technically Sony is already winning so they don't have to do anything. It is entirely possible Sony could win the holidays without cutting price. All it needs is some good retailer promotions and some good bundles.

It's obvious that X1 sales will rise due to the 3 bundles, but not enough to outsell the PS4, even in November. I believe the PS4 will be the most sought console this Christmas, so December will be a strong month for Sony too.