It looks like Microsoft is wanting to make some moolah on the Xbox One at launch, and not wait years and years in order to come back into the black. Microsoft wants to make profits on its next-gen console at launch, instead of bleeding money from the Xbox 360 launch.
Xbox chief marketing officer Yusuf Mehdi said that "we're looking to break even or low margin at worst" on the Xbox One. Microsoft and Sony have previously lost billions of dollars upon launching a console, but it looks like Microsoft won't be repeating this mistake with the Xbox One. Mehdi continued:
As we can cost-reduce our box as we've done with 360, we'll continue to price reduce and get even more competitive with our offering. You've seen us over the years constantly be focused on profitability and improving year over year. If you look at 360 that platform lasted for seven to eight years and it's going to go for another three years. It's incredibly profitable now in the tail.