I have never understood the whole concept of winning a console war, the important thing for me is that my console of choice sells enough to get supported...
That's a tangential discussion. The rumour is MS releasing a download only box, and whether they'd entertain a Kinect free SKU. The added cost of Kinect must surely be discouraging some adopters.
For most of it's lifetime the PS3 lagged way behind the 360 in worldwide sales...
I don't want to go OT, but this isn't at all true if you think about it a moment, unless you use the term 'way behind' to mean 'somewhat'. PS3 was 10 million behind at launch, but got support because it was assumed it'd be successful as PS1 and 2 were. Sony already had a reputation worth the developers' considerable investment in trying to get something onto the PS3. After a year, it was something like 10 million PS3s to XB360's <20 million, so PS3 was at 1/3 the total install base (HD consoles, excluding Wii), outnumber 2:1 by XB360. After two years, it was PS3's 20 something million to XB360's
0 million, so PS3 was at about 40% worldwide HD consoles, some 70+% of XB360's install base, and kept climbing. So in real terms, for most of its life PS3 was in spitting distance from XB360's numbers. If PS3 had remained way behind, let's say 1/3 of XB360's numbers, it may have lost some franchises, especially given aggro in developing for it. If it dropped to a smaller fraction, like 20%, it may have suffered heavily.
Point being, PS3 isn't a reference point for how a console can still be supported when selling relatively badly, because it didn't sell relatively badly.
If XB1 were to sell very poorly, it probably would end up being dropped by some titles, although the prevalence of cross-platform middleware makes that less likely than ever IMO. Hence MS doesn't want sales to be too low, and they want momentum, or else they'll pull an Ouya ('a what?', I hear you ask. That fancy new console that was DOA of course. Lots of attention and launch, fizzled out, now no-one cares. They've announced a new model. It's fallen on deaf ears). I think MS are doing just fine at the moment, but they could always do with more. Alternative models, if they appear, will be trying to get that more. I'm not convinced a driveless model will do that. I don't think savings will be significant, unless MS go lossy on it as others have suggested. MS will still lack performance and price advantage versus the competition. A lower priced model would only be good in getting existing XB fans to upgrade where $500 is too much, but $430-450 may be just enough to tempt them in.