Yeah, even the revised math is based on a lot of bad assumptions. The guesstimates on the cost are from launch, and just guesses. I doubt the cost to manufacture is still(or ever was) $400. More likely to be near $350-370. With that said, the cost of the free games and such would be equal or greater than $60 million. So I would guess that this cost them close to $75-90 million.

Regardless, it was money well spent.

Well you must learn the how business works, companies offer discounts and deals to get you into the store. Based only the horrible article of downplay, he is essentially saying that the new buyers of XB1 on need to buy 1-2 accessories/games to make a profit on 1.2 million sales.

Thanks Kowenicki for essenitally killing this article/thread.

Wow, that's as simplistic math as it gets. At first, assuming that they still haven't lowered manufacturing costs by a single cent from the start.  Also, not even considering that the price drop acted as an informal advertisement, giving them exposure in the media as well as in store promotion newsletters, which would not have happened otherwise, thus forcing them to spend extra on marketing.

Sure, MS incurred some losses from the promotion, but nowhere near $63 million. But also, I am sure most of those losses were recouped day one from new XBL signups and extra games/accessories purchased.

63M? That's nothing, MS is indeed popping corks! I would figure it would be way more.

OH That^^

Maketshare gain is the most important for MS now, not losing few dollars here and there to obtain it. This article and the calculation is all wrong as it does not consider the money those new Xbox owners will bring in not including the K factor too (friends buying because of friends having an Xbox One) :)

Anyway, how on earth can you judge better than Microsoft if they wasted money or not?

This is a victory for Microsoft at many level. Marketshare, stopping Sony's streak, big visibility in the medias, more Xbox One owners...

Really ? Companies offer discounts and deals to get you into the store ? I didn't know this :)

And what should be the 'limit'/target when you do 'discounts' ? It depends on what ? But of course you didn't get my post/point, it's obvious.

Losing a couple bucks here and there on a console is meaningless. Market share and getting the console into the hands of gamers is what counts. Xbox Live and buying software is where the real money is.

Losing few dollars ? Selling 1.4M consoles at those price ?  you guys must be very rich, more than MS...

Sure, but I'd love to know how much software is sold compared to the US and UK.  I'm pretty sure it's a wide margain thus these two markets are huge!
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