Originally Posted by Houshyamama
Google reveals no source stating that M$ will be selling the XBOX One at a loss. Maybe I didn't look deep enough, but I see nothing but wild speculation.
From what I understand of console sales cycles, Sony, Nintendo and Microsoft tend to lose money on their systems when they first come out. The price drops tend to create a flood in demand, selling more units. But I'd assume for all three that they know that, so as long as they end up in the black by the end of the system's lifespan they are fine with it.