Hawk269
Member
From a Microsoft long term strategy standpoint, I just can't see them happily selling a console at a loss to fight for parity with Sony. What's the point?
There are a few...
Xbox Live Memberships
Royalty fees from 3rd party games sold on the system
Xbox Live App/Media Sales
There are a lot of other reasons like accessories etc, that factor into it. MS has been making a mint on Live alone, having more systems in consumers hands means more sales from other sources for MS. Same for Sony as well.