Microsoft selling Xbox One hardware at a profit

Xbox chief marketing officer Yusuf Mehdi has claimed that Microsoft will not make a loss on each Xbox One it sells.

Console platform holders have traditionally taken a hit on hardware in the hope of regaining any losses via software sales. Nintendo is the notable exception to this rule, although even the big N recently admitted that it actually loses cash for each Wii U it sells.

"The strategy will continue which is that we’re looking to be break even or low margin at worst on [Xbox One] and then make money selling additional games, the Xbox Live service and other capabilities on top,” he told the Citi Global Technology Conference, as reported by Gamesindustry.

"And as we can cost-reduce our box as we’ve done with 360, we’ll do that to continue to price reduce and get even more competitive with our offering.

"If you look at 360 that platform lasted for seven to eight years and it’s going to go for another three years. It’s incredibly profitable now in the tail.

"Some of these things take some time in the launch year in which you invest, and then they play out over time. We’re going to continue to invest in Xbox 360, and the two devices can work in concert. So it’s not like the day we ship Xbox One your 360 won’t work. We’ll continue to support it."

Xbox One will be released in the UK November 22nd and will retail for 429.

About MCV Staff

Check Also

gamescom biz to digitally bring together the gamescom, gamescom asia and devcom communities all year round

The people behind the gamescom industry trade fair event have announced a new online community hub called gamescom biz