Each Xbox console sold, is sold at loss

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TheDeeGee:

That's why the Windows Store never has sales 😛
It has two "sections" of deals two times a month. There ain't a better store. They want you to buy games.
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cryohellinc:

and they make hundredfold back from licensing/software/platform fees e.t.c. and economies of scale.
Not sure about the hundred fold, but they depend more on the long term game for this for sure.
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Wow, so Microsoft has made the first air purifier that loses money? I am surprised. j/k Microsoft just can't seem to get consoles right, can they? The first one was giganta-massive The 360 nearly killed the brand off The last one was a marketing nightmare And this one is yet another joke, and analogously is like the unpopular high-schooler that people only hang with because he has got a pool and a car to ferry people around. No one wants to hang with you Tommy! Stop trying to impress everyone with you 'listing' your material possessions...we don't care!
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Katana1074:

And your point is ? companies are there to make money after all not losses, ya gotta give kudos to Nintendo for that one....
The point being is that the components and the Switch itself is very cheap to produce. Even at 720p, games struggle to keep a stable framerate.
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I won't argue with anyone that wants to sell me cheaper hardware. lol
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If only Nvidia and AMD sold hardware at a loss, right?
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ManofGod:

If you game a lot, this is a really good deal.
Can you keep the games?
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Loobyluggs:

Can you keep the games?
Nope but, it does not matter, since you are not paying the cost of individual games. If you game a ton, $10 a month is nothing.
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ManofGod:

Nope but, it does not matter, since you are not paying the cost of individual games. If you game a ton, $10 a month is nothing.
Money is not nothing. Money is not being used to exchange goods, but a service...a service of something that is a good. That which has value cannot be turned into something that is not.
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Loobyluggs:

Money is not nothing. Money is not being used to exchange goods, but a service...a service of something that is a good. That which has value cannot be turned into something that is not.
Then therefore, get rid of your car, your internet, your gas, your electric, your netflix, you amazon prime, your hulu, your hbomax and on and on and on......... *Shrug* If you think that it is not worth it for you, that is on you but, for others, you are wrong.
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Great deal on the console only to get screwed on the software...;)
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That consoles are sold at a loss has been true for quite some time now, and with current supply / demand in consumer electronics, I'm not surprised they're sold quite well (in comparison to the supply of course). What would really interest me, what would a current gen console cost if they wouldn't be sold at a loss? What would games cost if they wouldn't have to finance a cut to pay for consoles later on? (since that's how Sony and M$ make money on console gaming)
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waltc3:

Great deal on the console only to get screwed on the software...;)
Yup.
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ManofGod:

Then therefore, get rid of your car, your internet, your gas, your electric, your netflix, you amazon prime, your hulu, your hbomax and on and on and on......... *Shrug* If you think that it is not worth it for you, that is on you but, for others, you are wrong.
I get your point, I really do: but here is the way my mind works: https://c1.staticflickr.com/7/6019/6235015252_79b4478e16_b.jpg That is fun^^ https://static.seattletimes.com/wp-content/uploads/2015/07/07212015-bridgetolls1-1020x691.jpg This sucks...
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Loobyluggs:

Yup.
Then use Linux and free to play games only.
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for me Game Pass Ultimate has paid off in spades. I got Forza Horizon 4(a permanent fixture) MS Flight Sim(also permanent) and EA games like the more recent NFS games (are decent for "free") and all kinds of other games that keep my son busy. I've made out pretty well with that on my OG Xbox PC and Series S.
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waltc3:

Great deal on the console only to get screwed on the software...;)
Pretty much this, yeah -- also, after a couple years they refactor the hardware design and often aren't taking a loss on hardware anymore at that point. PC you pay more for base hardware, yes -- but games are typically much cheaper and your online library isn't held hostage by a monthly subscription fee. I actually like console gaming quite a bit, but once Sony and Nintendo jumped on the subscription model I jumped ship, who knows maybe for good. Most people need a PC/computer/laptop anyway so provided you're willing to get over the learning curve hump, seems to me you could just tack on whatever the price of the console is to the PC you were gonna buy anyway so it's capable of playing games, no? As opposed to getting the console and the PC I mean. I like owning physical copies of my games though so I'll miss that aspect. There are exclusive games that exist by platform so perhaps someone with a very strong preference could justify it though. To each their own and all that.
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They need some big exclusives. Their biggest failing last generation was continuing to rely on Gears, Halo, and Forza. Most people burned out on those IPs by the end of the 360 Era. They had nothing new last round. For the last few years, they've been buying studios, but there's no big new exclusives. Worse for them, if they just take the multi-platform games and don't let them come to PS5, they just look like assholes. I guess if you're not already invested in the PC or PlayStation, jumping in on Xbox with GamePass makes sense, but that seems like an odd business strategy.
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rm082e:

For the last few years, they've been buying studios, but there's no big new exclusives. Worse for them, if they just take the multi-platform games and don't let them come to PS5, they just look like assholes.
They do make exclusives "Microsoft" exclusives. I dont see why they would bring them to Playstation if they keep their exclusives to themselves. Microsoft doesnt really care if you get the game on xbox or pc as long as it stays on Microsoft ecosystem.