Only problem with your argument and countless others before is the belief that MS will continue to drop money on a non profitable product.  MS can easily cut their losses if things don't turn around soon.  How else would you explain the panic mode nature just this past year with all these kinect removal, price slashes, promo deals, bundles, advirtising, buying 3rd party exclusivity deals, etc.. how much profit do you think MS are actually making off Xbox now? And to still see that your top competitor is still outselling you 2:1 even after all that?...  And it's not even officially a whole year yet since console release.  How do you think all this looks to investors?  If it's not about being 1st in the industry and all about profitability, then why take such drastic actions to get more sale throughs?

And lastly.. Sony might be in financial trouble, but the Playstation brand is not.  If anything, it could be sold or branch off entirely, but Playstation will remain.  Not the same could be said for Xbox though.  So don't kid yourself thinking because Xbox hides in the shadow and pockets of MS that it's safe..   que Zune, Tablet PC, Pocket PC, soon to be Surface Tabs, and others. 

Problem is that your argument is based on a falsehood. Xbox is not a non profitable product. It has been years since it has shown a loss.  MS now breaks up the hardware and software for the divisions Xbox is in. Both the software and hardware part of the business is profitable.  

MS still has a chance in the US which is what they should focus on. They are going to lose WW undoubtedly so they need to try and win what they can. I personally hope they lose everything though. Not just because I am PS fan but because Xbox has just done a lot to piss me off. I bought both the OG and the 360 and they both started off strong and then basically become fancy paperweights because MS stops developing for them after a few years. Not to mention the long line of tools (Spencer being the latest) to lead the brand-_- Then the X1 tries to implement the worst gaming policies and treats the gamers like we are stupid. Now there is this stupid graphics parity so standards have to be lowered for PS games so the X1 doesn't look as bad. It wasn't enough that MS ruins gaming for their fans but now they have to try and take away PS advantages too...I was always a get all consoles kind of guy until this gen when Xbox has just proven time and time again there's no reason to own their console:(

Lol.. it doesn't take much to see that the X1 probably isn't profitable right now.  How much money do you think MS are losing currently with the x1 promos just to try and catch up sale wise?  the price cuts, the bundles, etc.. and now the sale through ratio... Just because MS as a whole is making money means jack to Xbox as a product.  how do you make profit if you're spending more than you're making off a product?  The game bundles, free games, giveaways, price cuts, kinect removal, etc.. that don't come cheap.. and it ultimately affects your bottom dollar especially if you have less product out there to help you recoup that money back... hence the urgency to try and sell as many units as they can with this fireslash going on.. is it great for the customer?  you bet.. but at what cost to MS? 

when they price it at 300...we will see how much of a loss cause it is.

XOne is not a lost cause; it just did a lot less than expected. But this does not make the XOne a lost cause.

What price has to do with current situation ? XOne is already cheaper than PS4, and by the time it will be 299$, you will have a Slim PS4 at 299$, nothing will change. But again, XOne is not a lost cause, it does not need to sell close to PS4 to be succesful and profitable.

This article and title just smells like fanboy bait. Also it quotes Pachter and I feel like I remember, at some point in the past, deciding not to trust him.

I'm not really that into MS, but as far as I can tell, 6+ million consoles in the first year is still quite good. There's plenty of room for them, and Sony, and Nintendo.

First off all the X1 sold from launch were sold at a profit.  Then the first price cut wasnt a price cut it was the introduction of a new SKU without a key component. So that new SKU will still sold at a profit.  We have seen the quarterly results from MS each qtr and the results have still resulted in a profit.  Now when you bundle in a game you dont pay the publisher the same amount that the publisher will get selling a retail disc.  This is because although every bundle may include the game, the publisher would not have sold that same game to a customer had the console been sold without the game.  You may sell 100 consoles with the game and only pay the publisher the equivalent of 50 customers.  

This generation started off diffrently as well. This generation started with MS making a profit on every console sold. This generation started off with far more opportunities for revenue to be made outside of games.  The vast majority of purchasers this first year also are people that will rent movies, purchase games online (for the same price as physical discs), etc.  So again as results have shown profitability will continue.  Lets not also act like the inclusion of games for the holiday season is anything new for MS. They did it previous generations as well and the X360 for the last like 7 years has been profitable even with holiday bundles.  The biggest issue MS had this generation was starting with hardware that made a profit out the door.  The $100 price difference between the PS4 and the X1 was a big mistake.  The talk of doom and gloom is just so stupid.  It didnt kills Sony and the PS3 when they dropped price $100 per year the 1st 3 years and literally dropped capabilities out of the box.  Kinect may have been removed from the packaging, but it continues to work.  MS will quickly make the money back on these promotions with additional software sales and online revenue.

When is a console ever profitable within one year for MicroSony? Of course they've still lost money on the endeavor, just like Sony. It takes time for them to make back the investment required to create and launch and maintain these products.

All that really matters is when they have eventually discontinued the product, was it profitable? That matters. What doesn't matter is what it looks like less than a year in, unless of course it's a complete disaster. Which no one in their right mind would claim the Xbone is right now. Judging profitability right now would be like an NHL team giving up right now only 20 games into an 82 game season.