Xbox: Microsoft says it never made a penny selling consoles
The vice president of Microsoft’s Xbox division, Lori Wright, recently revealed that the company has sold all the consoles it has released to date without profit, even having lost money by making its gaming machines available.
The news comes through the process that is being carried out in court and that opposes Epic Games to Apple, where several influential members of the video game industry have been called to make statements.
Wright has been called to testify in recent days, and this data comes in response to a question from one of Epic’s attorneys, Wes Earnhardt, who questioned Xbox’s profit margin with its consoles.
Xbox revenue comes from services like Game Pass
The executive said that all Xbox consoles lost, claiming that the brand is focused on providing the best gaming experience for its fans, allowing revenue to flow through subscription services such as the popular Xbox Game Pass or the sale of games in digital format.
The intention of the Epic lawyer with these types of questions is to show that console manufacturers have good reason to receive 30% of the sale of digital games, since this is one of their main sources of income.
In this way, Epic aims to show that Apple should not have the same benefit through the App Store, since it benefits a lot from the sale of iOS devices such as the iPhone or iPad.
Xbox and PlayStation lose money, Nintendo is the exception to the rule
The revelation that Xbox does not make money selling consoles is not surprising, as this type of hardware is often sold below cost to put more units in the hands of gamers.
The biggest exception to this modus operandi is Nintendo, which manages to make some money through the sale of hardware. Sony, however, has also admitted that it sells its consoles below cost, allowing it to reach more households and make money through the PS Store and PlayStation Plus and PlayStation Now services.
Xbox has invested heavily in services in recent years, looking to bring more and more top games to Game Pass, which are available to players through a monthly subscription. The brand will even look for ways to bring Game Pass to other consoles, thereby increasing its player base and revenue.
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via: PC Mag
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