You're still missing the point. Their whole end game is the ecosystem. GP. That's a line of revenue that keeps on giving. The more subscriptions, the more they make each and every month. Their all ready past the 10+ million bracket (I think that's them down playing those numbers too. GP is always advertised as "Over 100, when its really over 250 games) it might be worth it to them to take the loss as they'll make more money through GP in the long run.
I don't know if it'll happen but I can easily see Series X at $399 and Series E at $299, both with a free month or 3 of gamepass. That'll sell like hot cakes.
I understand your point clearly, but you can't build an ecosystem by taking massive amounts of lose on the hope that people will subscribe to your gamepass system. There is no guarantee people are going to sign up at all.
Its an extremely risky venture. There is a chance people will buy into that system but what if others don't.
Your taking a full maximum loss.
Like i said before the tech in the xbox is unbelievable, i personally think its costs +600 easily to create that system, selling it for 400 is just to much of a lose, if you said 499 then i would say yes theirs a chance, thats resonable and the system you have in place can/will work.
I could even stretch to 450 but 400, No way, that tech in that box is better than most modern computers. Have you tried to assemble a component box with those specs for the pc side, your going into +1000 range..
I would want nothing better than that box to come out at 400 bucks, i am not rich, and would welcome it.
Just my common sense says no, its way to much of a lose per unit to take.