You don't understand that they're making a loss. Selling a million consoles with $50 profit is more than selling 10,000,000 with a $20 loss. 

1. +50,000,000 dollars. 

2. -200,000,000 dollars. 

Simple math. 

That's exactly what I don't understand. Unless I'm missing something, I don't really follow the logic in it.

Team America opening song began playing in my head when I saw this post.

the 2 AC bundle was 350 for nov and dec it was announced and released for 399 around 10/15/14 but like what we are seeing now it was dropped 11/2/14 a mere two weeks later to 350

I'm a bit baffled by this move. Why did they not just make this offer a permanent extension to the holiday price? Why raise the price again for 8 days, confuse retailers and consumers, then drop the price again. If the aim was to keep customers buying in large numbers to take advantage of what was advertised as a short and limited sale period, why not on the very last day just release a statement along the lines of "Due to the incredible reaction from consumers to the new Xbox One price point, we have decided to continue to offer the console at this price point for NA consumers...etc". No strange price swings, and no annoyed customers to deal with.

Was this call really made in one week? Or is lowering, then hiking, then lowering again a vaild strategy?

This move also confirms what we knew already, MS are lazer focused on their home market and this is definitely the best move for them.

Also, to those insinuating that money is no concern to MS, this cut should and would have been the same worldwide if that were the case. They particularly need to try and generate some momentum in Europe.

They're not cold hard facts, that's journalism (and it was debunked and shat on yonks ago). Come to me with numbers.

I actually have figures for that division and Xbox losing $2b a year is an impossibility.

Rock Sherlund does not like Xbox and has an axe to grind.

OFCOM doesn't have anything to do with consumer regulation.  OFCOM, which is the equivalent to the Federal Communications Commission (FCC), regulates and oversees the airwaves in the UK and ensures that offensive programming or fraudulent advertising is dealt with and kept off the airwaves.  OFCOM would be involved if Microsoft made a fraudulent claim or price in an advertment for the Xbox One.

For example, OFCOM is the government body in the movie "Pirate Radio"/"The Boat That Rocked" that attempted to stop the pirate radio station operating aboard the trawler off the coast of the UK. 

The Office of Fair Trading is the Britiish government agency that regulates consumer trade in the UK.  It would be the equivelent to the US Federal Trade Commision (FTC).  I can't locate anything that suggests that changing a price in the UK from one price, to another, than back again to another is illegal.