microsoft need to look at the situation they've set themselves up in, have a full blown mea culpa and just eat the loss. the losses from RROD hurt, but it didn't torpedo them like this will.
there are more than enough ways to monetise this box once it's set up in living rooms ogling domestic consumer habits, hawking data to whoever pays for it, but that's meaningless as long as it lingers on shelves.
before the blowback, they could've maybe aimed for price parity with the PS4; as things stand, every sail must be bent to push it lower. there must be a lot of resistance and trepidation towards the whole idea of console hardware at microsoft for them to stay this suicidal course.
hell, if it came in at $325, they could've loaded it with whatever consumer alley rape policies they could've conjured and it still would've done monster sales.