Tootylicious said: Microsoft can afford a $50 loss with every console, Sony can't. I don't see why they should raise the price again, they will just lose market share to PS4 again. Microsoft's goal for this generation is to stay on par with Sony in the U.S. |
Technically Microsoft can afford a $200 loss with their resources. The issue is how they see Xbox division and their goals within it. A $199 X1 would guarantee them NA and make them competitive in Europe even. The issue is they would lose billions over the coming years doing so.
Microsoft made a play for market share, but need to reduce losses to show Xbox is viable for the company. I think they want the brand integrity to be at a point they can manage small losses or even gains on consoles sold. This holiday was a mjor push for market share with the idea being all that free marketing and ancilliary income afterwards from those new owners.
My guess is $399 X1 will no longer be a regular thing by June 2015 as sales trends will return to pre November levels.