Xbox One X won't turn a profit for Microsoft

New hardware won't make money for MS, at least at first.
Text: Mike Holmes
Published 2017-06-15

Xbox head honcho Phil Spencer has been talking far and wide about Xbox One X this week, this following the console's grand unveiling on Sunday night during Microsoft's press conference.

During said event, we were told the price of the console at launch, with it set to cost £449 / $499 / 499 euros when it launches on November 7. That's a fairly substantial investment for most people, but it turns out that parting with the sort of cash doesn't mean you'll be lining Microsoft's collective pocket, at least not at first.

In a recent interview with Business Insider, Spencer confirmed with a simple "no" that the company will not be making a profit off of initial hardware sales (the cost of components inevitably comes down and eventually they will, but for now at least, there's no profit).

"I don't want to get into all the numbers," Spencer went on to say, "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."

Indeed. Much of the money that any platform holder makes is from software sales (that's why console games are more expensive than their counterparts on PC), and with Xbox One X this will be no different.

It's impossible to say whether Microsoft will be making a loss on the Xbox One X, or merely breaking even, but we do know for sure that they'll be relying on selling lots of games to turn this into a profitable venture.

Will you be picking one up later this year?

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