If they can afford to lose that in just a quarter, they must have some fairly massive cash reserves, or extremely confident VCs. If their strategy is to choke off the oxygen supply to their main competitors - that'll be the likes of BFG and such - then they'd better simply have Far More Cash Than They Do. I'm not so sure in the history of corporate warfare however that this tactic is a very wise one and carries massive risk. Effectively they are trying to double bluff each other until someone runs out of capital and croaks - a figure they don't know.
It is of course having no effect on indies.