Common sense would say that the price should come down for a new product. Eventually I suppose that will happen, but I’m surprised to learn that the new Xbox is being sold for less than production cost. Of course, I shouldn’t be that surprised. We get all sorts of freebies in softwear and elsewhere from vendors hoping to sell us something and to use the gift as a foot in the door to our wallets.
In this case, the profitability will come from games. At least that’s the plan.