Xbox One X will not generate profits for Microsoft
Even at $499 USD, the company will sell the new console of Xbox One X at a loss.
On June 11 Microsoft revealed in E3 2017 that Xbox One X will cost $499 USD. The console is the most expensive of this generation for its capabilities, however, it seems that the company has not contemplated making money with this system.
During an interview with Business Insider, Phil Spencer, head of Xbox division, gave a simple “no” when the media asked if sales of Xbox One X will generate profits for Microsoft.
Later, when asked if the console would be sold at a loss, Spencer chose to avoid the question with his words. “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,” said the Xbox boss.
Microsoft repeatedly mentioned that Xbox One X would be a premium console for a segment of consumers looking for 4K games. Due to its components and its small size, the company is proud of the price of $499 USD.
Also keep in mind that many consoles go on sale with a margin of loss and remain so for a few years. Example of this is PlayStation 3 and Wii U, although Nintendo assured that they would sell Switch with profits.
Xbox One X will debut on November 7 for $499 USD.