Well, to settle this for once and for all..... I did some research...consider this:
1. Microsoft currently has $40 Billion in CASH alone in the bank...
2. Revenues for Microsoft increased by $2.34 billion to $25.3 billion in 2001...
3. Most of Microsoft's money comes from selling Windows and not games...
4.If it costs Microsoft $350 to make a console... and if it currently sells for $200, than they are losing $150 per console... which mean if they sell 1 million consoles, then they lose $150 Million dollars....
5.But, if they sell a game($80) and an extra controller($50)per console to, then they make $130 Million dollars... so in the end they just lose 20 million... and most gamers buy more than one game when they buy a new console... trust me..
6.PLUS, Microsft sold about 3 games per console during it's launch...
So to sum it up, EVEN though Microsoft is losing about $150 per console, they are also making most of that loss up with selling games, controller, DVD add-ons, etc..
Considering ALL that, who wouldnt believe that Microsoft will be willing to sell their XBOX at $200...
o_87