Anyone that thinks the Xbone will "bomb" needs their head examined and this is coming from a guy that has been trashing the Xbone since it's announcement (and has pre-ordered the PS4). The Xbone will still sell millions, but the mistakes MS has made bundled with the way Sony has played off those mistakes, will cost them market share.
well "bombing" is always relative...
The first xbox was successfull first entry in the market for Microsoft and because of this the 4 billion they lost were the entry price
the 360 istheir big success and yet untill now they are about to break even (they had 3 billion of losses from 2005 to 2009)
despite the fact that they launched a full year ahead of the PS3
Microsoft (and it's shareholders) want to make money at a point and they still have to recoup those losses of the first Xbox, that's why they stopped subsiding console sales with game sales
(i assume Sony has reduced their susbsiding as well, sicne they also blew a lot of moeny on the PS3)
the "subsiding expensive consoles with game sales" tactic doesn't work long term...
look at Nintendo:
Nintendo only has their game business they don't have Windows/Office like Microsoft or all the electronics like Sony to compensate for losses
because of that they always sold their consoles for a small profit or at least breaking even, which means even the Gamecube made them money despite bad sales
Because of those points Microsoft is in a tight spot:
-they want to make money, so they hardly can reduce the price early
-they launch simultaneously with Sony, against which they had a 1 year headstart last time
- they pissed off some markets abroad seriously, by focusing on the US/UK market so extreme, they even had to throw in Fifa for the european pre-orders to get some good-will back