They can't sustain the losses as well. Truly, they can't. Their subscription install isn't significant enough, and their streaming and Game Pass competitor isn't sufficiently developed.
And if Xbox removes Xbox Live for online play? MS can make it up with Game Pass, but Sony doesn't have a competitive product.
Surely you Kid?
The same company that sold PS3 at close to $200 loss for years?
Last I recalled XBOX doesn't pull the same numbers on network revenue as PlayStation, your suggestion of removing XBLG (which is a pipe dream IMO) reduces revenue greatly, not to mention they already hiked the price in some regions, I don't know why people think it's going anywhere.
Neither are they making a profit on GP but somehow MS can handle the losses but Sony can't?.
Anyways, the XSX has a more powerful GPU, better RAM, More SSD space.
It only takes simple logic to know it's BOM cost more to produce than the PS5,
Sony wouldn't be taking PS3 Levels of losses but they absolutely can take some if they feel it needful to compete. I'm glad MS came in at $299 $499, hell I'd hope they take more losses and go $449 even, should force Sony hand which means I get a cheaper box.