Good god, how will Microsoft stay in business at this rate!?

Ubisoft isn't just giving those copies of Unity and Blag flag for free. MS has to pay for each and every copy. 

They are not $80 each.

MS is distributing (digital copies) and marketing them. Ubisoft is just getting the publisher cut. Besides, in what world would Black Flag be $80 right now?

It's all about the software sales. More units out there = more software sales, and that's where the money is in the videogame business.

No I said both Unity and Black flag together were $80. 

It still wouldn't be cheap. The publishers cut wouldn't be like $10 or $20... It would be much more than that. 

That's not much at all, assuming that the maths is correct. Kinda wish that Nintendo dropped the price for the Wii U

Maybe they overestimated the effect of Smash Bros. on sales. 

This is the line I saw that made me think you meant both cost $80 each. Why would you say $329 - $60 - $60 if you know Unity and Black Flag would never be that much for a publisher's cost?

I suspect so. It happened last year with 3D World. Or they just want to maximize profit. Either way with the money they make they should consider making some worthwhile investments that sets themselves stronger in the future

The article is almost certainly a significant underestimate. It only goes based on MSRP and cost of goods sold for Microsoft, but in reality Microsoft is not a retail vendor, and no vendor would sell someone else's loss-leader product at a loss themselves. Shipping and inventory aren't cheap expenses.

If the loss is $60 million based on hardware, the real loss is probably close to $100 million. As there was an article a few months ago saying the X1 had lost $400 million before and during launch, which means the X1 is now an even half-billion dollars in the red.

Not as bad as the Surface's $900 million dollars in the red, but it's not good. It's certain Sony will be profitable with the PS4 eons before Microsoft is with the X1.