I wonder how Microsoft feels about XBox and other things. Gaining marketshare by throwing money at it is an absolutely viable strategy for companies that can do it.
AMD doesnt need to price-cut to compete here. If AMD could make OpenCL and similar projects more successful than CUDA and nVidia, which requires time,money,investment in people,talent, etc etc. then AMD might in 2 or 3 years have a viable alternative to compete.
At the expense of employee benefits, shareholder value/payouts, public interests, competition, everyone and everything ,except M$ board & C-suite , lost money.