Okay kiddos, prepare to be schooled by somebody with almost twenty years of retail experience, in something known as Wholesale. Wholesale is when a company buys a large amount of items for a very small price per item, then sells that item in their store for an inflated price, usually called the MSRP or Manufacturer's Suggested Retail Price. MSRP is not the set in stone price. It is just a guideline so that certain stores don't overcharge you for items. The MSRP of a Xbox One S is currently $279.99 for a 500gb bundle. But, Microsoft currently has it on sale practically everywhere at a new MSRP of $199.99 for a limited time, basically until the end of the year. That gives stores the option to sell the Xbox at that price, or lower, if they choose. You may think that Target would be losing money selling Xboxes for $60 less than MSRP, but they wouldn't. Because, they only pay a few dollars for each console, if even that much, because they buy thousands of them. Any unsold consoles get sent back to the manufacturer (being Microsoft), and Target gets paid back the money that it spent on the unsold consoles. Or, sometimes, a third party store like a TJ Maxx or a Ross will pay Target slightly more than they paid for the systems wholesale. So, that they can sell them at their store for a discounted price. Target stuff ends up in my town's local TJ Maxx all the time because of this, because they share a parking lot, and it is easier for Target to offload clearance items on to the local TJ Maxx, than shipping a bunch of stuff back to various companies and getting the money refunded. The prices that we pay for items, are not what the items are actually worth. That is why Microsoft can sell a console that cost $500 a few years ago, for only $200 now. Because, they set the price, and then the companies they sell the products to, can choose to have sales to move the items out of stores. Because, sending them back and getting refunded is a long arduous process.