Sony's $600 PS3 was pushing it though did it really change things? They're pretty close in the overall console generation even with their slow start. Besides, as much as people hate it, the $500 XB1 does come with a Kinect even if people don't want it, it's reflected in the price. You just got a overhyped PS3 for $600 back then which made way less sense.
The point is, they're going to go the way Nintendo did with the Wii, if they can make money back from day 1 and not keep adding to their losses from selling each unit at a loss to begin with then they can cut the $500 price down quicker. No one has answered my question, how long was it before we saw the first price cut on the 360? Consoles never see price cuts quick, but that could change this generation with the XB1, which in the end would be a good thing.
I also believe that even at $600 Sony was losing money on each PS3 at the time still, so much so they had to sell off all their Cell chip fabs to Toshiba after dropping billions in R&D on it.
X360's first price cut came in August 2007 (almost 2yrs Removved from its debut in 2005)
Selling the Xbox One at break even price (or small profit) of $500 is a risk,reward situation. The risk is, trying to convince people to shell out $500 while the WOLRDS economy is still iffy. The reward being, if they can convince more consumers outside of us core gamers, to adopt early, the Xbox One will be a $$CASH COW$$ right out of the gate.
Xbox One early sales, will depend on how the GameStop, Walmart, Best Buy, etc... Staff pitch the X1 to consumers.
Their commercials will also be key. I liked the NFL Commercial, but they are gonna have to have more commercials that don't move at a frantic pace, and just show how efficient and simple the console is to use.
The PS3 was selling at a huge loss during its debut. http://arstechnica.c...g/2006/11/8239/
The PS4 may be sold at a loss, but no where near the losses of the PS3..http://www.gamespot....for-ps4-6412760