Microsoft recently revealed the Xbox “Project Scorpio”, now known as the Xbox One X. Microsoft revealed a lot about the upcoming console. According to Phil Spencer, the Xbox One X console is not sold at a profit. This is not new, many other console manufacturers also don’t make any money on the hardware sales of the console. Even if the console is sold at a loss, the accessory, subscriptions and game sales of the console make up for it.
Talking with BusinessInsider at E3 2017, Microsoft’s Phil Spencer said “No” when he was asked if the Xbox One X makes any money for Microsoft. When he was asked for more details, he didn’t share much. Spencer did not confirm if Microsoft is losing money on the sales of the Xbox One X or not, but he did confirm that the console is not selling at a profit for Microsoft.
“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. The money-making part is in selling games.”
– Says Phil Spencer, in an interview with BusinessInsider.
According to Spencer, the part where the profit is being made in the console business is in selling games. The production cost of the Xbox One X will get lower over time because as the components get old, their price goes down.
The Xbox One X is going to be the tiniest and the most powerful console ever by Microsoft. It will cost $499 and it will hit the shelves on November 7, 2017. For more, keep it set on GeeksULTD.