Microsoft is more interested in getting the system in living rooms to sell people on games and services. They can eat that cost as a company pretty easily.
another misguided statement.
xbox has so much unlimited resources they had to take out kinect and close down their tvtvtv studios and slash another 80 bucks to stay competitive. sure.
if xbox can access microsoft's vault easily then they would've sold xbone+kinect at 399 and "took the loss because they easily can."
of course getting systems to homes is step 1 of the process to being successful and xbox showed the past year that 1) people didn't give a shit about the brand and 2) is even getting crushed when priced competitively so there was no other way to be able to get to step 1 other than slash the price and take a loss.
about ms taking over the living room, just lol. in the age of netflix the feature they cane up with was an hdmi passthrough.
they bet on the wrong horse. i don't even know that they're still interested in tvtvtv seeing that they closed the studios responsible for their original programming.