Microsoft isn’t making a profit with their new Xbox One X console
The Xbox One X, formerly known as Project Scorpio, isn’t making money for Microsoft in hardware sales. At least not yet, according to a recent interview with Business Insider (via GameSpot.) The recently revealed console is categorized as being “in a different league” with specifications surpassing its competitors and nearly doubling in power of its predecessor. And it has a pretty $500 price tag to prove it.
But it seems even the cost of the Xbox One X that has everyone gawking isn’t even breaking even for Microsoft. When Head of Xbox Phil Spencer was asked by the press whether the tech giant was making money, the man simply answered “No.” But it’s not a loss, necessarily. When asked if each unit sold would result in lost profit for Microsoft, Spencer stated “I didn’t answer it that way.”
He went on the clarify:
“I don’t want to get into all the numbers, but in aggregate you should think about the hardware part of the console business is not the money-making part of the business,” Spencer said. “The money-making part is in selling games.”
It’s nothing new for the console business, to be certain. Many hardware sales are pushed as a ‘loss’ of each unit at launch, making up for the deficit through the sales of games, DLC, and other digital content/subscriptions to keep gamer’s with a steady income over time. Eventually, the cost of making the console will decrease and its profit will increase.
Fans could also indirectly take this as a commitment by Microsoft to bring more titles to the Xbox One. It’s been a common complaint by users that have been wavering between console preferences. Fortunately, E3 2017 has seemed to alleviate many concerns with a total of 42 upcoming titles being released for Xbox One. 22 of them will be “console exclusive”.
Still, is the $500 price tag a bit too much for the console gaming market? Let us know what you think about the Xbox One X in the comments below.Further reading: Microsoft, Xbox One, Xbox One X