exaggeration for effect. point is MS has a lot more money than Sony. it wasn't that long ago sony was struggling financially (still is) and was forced to sell a bunch of assets. their TV homeelectronic sales are down compared to the 90s. South Korean companies are making ground. its future is not certain. MS can afford to sell at a loss Sony can't.
Did you just ignore most of what I wrote?
Just cause Microsoft can afford to bear losses, doesn't mean that they will allow the Xbox division to be operating at a significant loss, for the benefit of Xbox fans.
I mean that's the entire point of the 2 SKU strategy is it not? So that they don't have to suffer tremendous losses selling their expensive console at far below cost.
And once again, Sony CAN affort to sell the PS5 at a small loss. A loss I'd wager is not much smaller than what Microsoft would tolerate.
the point im trying to make is that if there is a war of attrition going on MS would win easily.
What war of attrition? If Microsoft sells their console at a big loss and Sony sell theirs at a small loss or even at cost. The winner at the end of it all will be Sony because if their sales remain high due to their brand strength, they will lose less money in the short term and make more money in the long term. If their sales are not so strong, they can be much more aggressive with pricing than Microsoft can. It's much easier to go from cost to small loss, than it is to go from big loss to an even bigger loss, and justify that to your shareholders.
If Microsoft shareholders go ahead and approve Xbox going super aggressive and try to price Sony out of the market by leveraging their strong revenues in other areas, then that is called Predatory Pricing and is illegal. So good luck with that.