@Leasy @Kamikaze Revy
From a business standpoint, I think you both are right.
I see Microsoft:
1. Setting the Retail Price at 500 USC
- Steep but not so much to the consumers who skipped on current gen consoles or haven't purchased a console since 2013.
- Not steep for the proactive electronics hobbyist who's demand stays high despite higher prices.
2. Having a Checkmate* Promotional Deal:
2a. Microsoft will have a full market promotion where console trade-ins would account for a guaranteed $120(older models) - $250(PS4 Pro/Xbox One S) credit towards the Scorpio
- Selling at such an initial incurred loss - since MSFT would incur the difference in actual value to credit value - would be made up from the software sales profit gained by an overwhelming increase in console market share.
- Would be an extremely hard deal to pass up for all but the most loyal Sony console loyalists.
- Would allow double dipping by consumers - Consumers could purchase a Xbox One S/PS4 Pro now with the intention and opportunity to do a reasonable economic upgrade less than a year later.
- If Sony sticks to its long-term plan for the PS4, consumers wouldn't be hesitant to make the jump to a MSFT console with an expected wait of 3yrs+ for a more powerful console.
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I could also see MSFT going full PC mode and offering the Scorpio console in 2 forms
1. Scorpio w/ static hardware (unchangeable performance outside of downloadable updates).
2. Scorpio w/ seamless interchangeable hardware to allow consumers to stay at the peak of console performance w/o sacrificing the need to be tech savvy or sacrifice the Xbox Live community that they play with.
Regardless, I'm actually surprisingly excited to see what the future holds in the next 3 years of gaming.
* I happen to like your checkmate phrase Revy. so I had to use it.