Microsoft Is Not Selling The Xbox One X At A Profit

The real money, Spencer argues, is in the software.

Posted By | On 15th, Jun. 2017 Under News | Follow This Author @Pramath1605


The Xbox One X may be priced $499, which many, including I, have argued is a high price (if a fair one)- however, it looks like Microsoft may still be losing money, even at that price. Speaking to Business Insider, Xbox Head Phil Spencer said that Microsoft is not making any money on the Xbox One X’s hardware, though he declined to clarify whether that meant they were taking a hit with each unit sold, either.

“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,” he went on, speaking about how for Microsoft, the money in gaming hardly lies in hardware sales anymore.

Given just how powerful the Xbox One X is, how loaded with sophisticated technology it is, and how it has been engineered into such a small size, there is no doubt that it is indeed an expensive bit of kit, and one that justifies its price- it’s just unfortunate that that price may be too high for the intended market.


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  • crazy_black_man- ✓ᵛᵉʳᶦᶠᶦᵉᵈ

    Software? What software? Oh, you mean…3rd party games? So what you’re saying is that you’re going to start advertising 3rd party games as if they’re only exclusive to your platform again? That never worked in the past bro.

    The Xbox One X is being sold at a loss even at $499, and the Xbox fanbase expected you to come in at a lower price of $399? Hilariousness!!! What were they thinking?

    YOU GOTTA GO OUT AND BUY THE SOFTWARE KIDS OR THE XBOX ONE X IS…

    https://uploads.disquscdn.com/images/f8af136a1ed9f26e1ac1ad56a2562a634e7ba11eb7d06917dd7957550a71de4c.jpg

    • C. Hoffer

      Screams of Red Dead Redem 2 to come out with Xbox X have died down now that the game has been pushed back. Everything else is pretty much a garbage title and the one’s that could be considered high quality games…yawn. I’m not going to be racing around a race track any time soon.
      And what was up with E3… a bunch of indie games?? ugh.
      Most appealing thing I saw was Metro E and its still a long way off.

      As for pricing. I knew it would be no lower than $499. Up here in Canada with a 40% exchange rate, that puppy will probably be selling at the low low price of $650 with a 500mb drive or $699 with a TB one. Unless M$ figures the market is so small here they could take an even bigger loss and eat some of the exchange rate for us. lol

      Sony on the other hand…wish they would allow cross platform gaming. Still, I will be playing Uncharted Lost Leg and Destiny 2 on it and that Witcher 3 complete version that I still haven’t got around to playing. lol. Maybe I’ll wait for the extra PS4Pro patches they are bringing first. 😉

    • Dougdec92

      Dead

  • Gamez Rule

    What software? Still waiting for what Albert Penello stated: “We have a great exclusive games lineup. We’re getting tonnes of developer support”

    Where are these great exclusive games and what dev-support has been given in 2017?

    • C. Hoffer

      I thought he meant all those lame indie games. lol

    • AuricGoldfinger

      Lame indie games, AAA, etc Microsoft had over 30 games playable at their E3 booth. Sony on the other hand, approximately 10.

    • Dougdec92

      the lame meh games at their e3 conference, the 42 gloriously meh games…

    • AuricGoldfinger

      You fanboys don’t know anything. Where was Sony’s software on display at E3? Because I’m about to burst your fanboy bubble with the photos I can post from attending E3 the past week lol. There was only a handful of games available to play at Sony’s E3 booth, very sad display of games.

    • Gamez Rule

      While you find pictures to post I have been playing PS4 full exclusive titles throughout 2017 while Xbone has had no full console exclusive released within 6 months ( and counting ) of 2017.

      Where are these great MS exclusive games and what dev-support has been given in 2017? = Loads from Sony and PS4 / Nothing from MS and Xbone. And as I own both consoles and support both consoles I know what I stated is correct.

      As for E3. Sony showed full exclusive titles for PS4, while MS spent too much time showing off other peoples multi platform games. AC-Origins, Shadow of War, Anthem, Metro, etc ( all coming to PS4 ). We needed to be shown a huge range of first party titles and exclusive titles to justify the purchase of a new console, and MS failed.

    • AuricGoldfinger

      “And as I own both consoles and support both consoles I know what I stated is correct.”

      States you own both consoles, as if 3 consoles don’t exist. Second, as if I don’t own all 3 consoles, a vita, and owned psvr day one, but sold it for $700 because I’d rather a better VR solution.

      Anyhow, as I stated in another post. Microsoft had more games available to play at their E3 booth, than Nintendo and Sony. I remember reading how much larger Sony & Nintendos E3 booths were compared to MS lol. Talk about an illusion. There were more screens to play Star Wars Battlefront, Call of Duty in Sony’s E3 section than there was for Detroit, Destiny 2, Matterfall, GT Sport, Knack 2.

      I don’t have to find pictures to post, they’re in my camera roll as I type this.

    • Gamez Rule

      And as I stated..

      “While you find pictures to post I have been playing PS4 full exclusive titles throughout 2017 while Xbone has had no full console exclusive released within 6 months ( and counting ) of 2017”

      Sony showed more exclusive games for their platform with more developer support than what MS showed off at their E3 showing as most of it can be played on PS4 or PC. As Sony stated “It’s all about the games” and that’s what they showed.

      Most of the Xbone games are set for 2018 like State of decay 2, Black desert, Sea Of Thieves, with no games that makes you want to buy into the Xbone brand in 2017 let alone 2018 and the other games shown by MS like AC-Origins, Shadow of War, Anthem, Metro, are all coming to PS4.

    • AuricGoldfinger

      And as I stated, I was in attendance for E3. You were at home, watching from behind a computer monitor lol. Below is what was available to play at each booth.

      Nintendo Booth:
      -Mario
      -Splatoon 2
      -ARMS

      Sony Booth:
      -6 random psvr
      -GT Sport
      -Destiny 2
      -Knack 2
      -Detroit
      -Matterfall
      -Everyobody Loves Golf
      -Battlefront 2
      -Call of Duty (playable in other areas of E3)
      -Marvel vs Capcom (playable in other areas of E3)

      Microsoft Booth:
      -Forza 7 (10 demo stations) + (2 driving simulators)
      -Crackdown 3 (12 demo stations)
      -Madden 18 (3 demo stations)
      -Lucky Tale (4 demo stations)
      -Path of Exile (2 demo stations)
      -Dragonball Fighter Z (2 demo stations) (playable in other areas of E3)
      -Minecraft 4K (6 demo stations)
      -Sonic Forces (2 demo stations)
      -Sonic Mania (2 demo stations)
      -Sea of Thieves ( (24 demo stations)
      -Full Metal Furies (2 demo stations)
      -Battle Chasers Nightwar (2 demo stations)
      -The Darwin Project (2 demo stations)
      ->Observer (1 demo stations)
      -AC Origins (6 demo stations)
      -Halo Wars 2 The Nightmare (6 PC demo stations)
      -Need For Speed (5 demo stations)
      -Project Cars 2 (2 demo stations) (playable in other area of E3)
      -Wulverblade (1 demo stations)
      -Raiders (2 demo stations)

  • Dafuq Iswrong

    <- this.

  • Dougdec92

    no wonder he has been thumping the drum loudly for MP games, theyll fetch money.
    And then again where is that amazing exclusives that will contribute to new convrts to make money aside the 3rd party software…..they will be taking losses for a while to come i guess.


 

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