>>193394680Like I said in the lsat thread, they'll pay 'shoppers' to buy their own units from retailers, then return them to their own warehouses. Retailers will think it's super popular and push the 720 hard, relegating most of the store space and internal advertising to it. Also, since it artifically inflates the sales numbers, so they can say 'the 720 was the most successful console launch ever'. Said popularity misconceptions will make your typical audience let the 'majority' do their thinking for them, hencing buying the 720 as to not get excluded by the overwhelming 'majority' purchasing it.
Recall that MS doesn't care about spending, since if they can successfully push this into even a fraction of homes, they can sell more information about you, than you know consciously yourself; such as everything you've said, or done within earshot of the console, how you react to certain stimuli (in games, movies), preferences, political views, typical or current mood etc. Better yet, since the consoles are always online, this can be constantly improved in patches. All that information can be sold for exorbant prices to the highest bidder, legally.
Throw that on top of ads all over the console, the huge monthly fees, and the design flaws (built to overheat, people are liable to replace their console after the first one fails, since they have an investment in the form of games) and you'll see that MS doesn't even need to make a lick of profit for the first 3-5 years.