Each Xbox console sold, is sold at loss
It is not uncommon to hear that consoles are sold at a loss, as the parties involved make their money by selling games. Interestingly enough that was actually confirmed by Microsoft.
Microsoft is selling its Xbox consoles at a loss. That is to say, they do not earn money for each console sold, but instead, they make their bet on making each unit sold profitably by selling video games and services such as Game Pass. As stated this, is not new info as well all knew that. But they have actually confirmed that confirmation.
This information came from Xbox's own vice president of business development, Lori Wright , who disclosed the information to Wes Earnhardt , the attorney for Epic Games:
-What is the margin that Microsoft gains with the sale of Xbox consoles?
-"We do not do it. We sell the consoles at a loss, ” Wright revealed.
After asking if Microsoft had obtained some profits once the sale of an Xbox console, the vice president was blunt: "No" .
Senior Member
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Joined: 2018-08-29
Aren't consoles sold at a loss for a long time now? The money comes from games and the various fees connected to the services, and it's a lot more money than the physical machines on their own could ever make..
Senior Member
Posts: 4600
Joined: 2020-08-03
for the price it's almost incredible what you're getting
I mean,a 12tf gpu with +500g/s bandwidth is worth that price ALONE.
with a 8c ryzen 3000 cpu (though a pretty weak one,but still,good mid range value chip)
a nvme ssd
blue ray drive
controller
and you can pretty much play box games only and then sell them
they're available at msrp here,which leads me to believe I'm just stupid not to have bought one already.My pc backlog has held me so far but I think I'll break.
Senior Member
Posts: 7192
Joined: 2006-09-24
Well makes sense. Consoles have been sold at loss for a long time. And their value is quite high. Especially the current gen.
Member
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Nowadays the game is played by streamers that all.
Senior Member
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Joined: 2014-10-20
and they make hundredfold back from licensing/software/platform fees e.t.c. and economies of scale.