Microsoft may make a "low margin" on the sale of Xbox One hardware at launch, the platform holder has revealed, stating that as with Xbox 360, it will continue to drive down price as the cost of manufacturing lowers.
"The strategy will continue which is that we're looking to be break even or low margin at worst on [Xbox One], and then we make money selling additional games, the Xbox LIVE service and other capabilities on top," said Microsoft's IEB CVP of marketing and strategy Yusuf Mehdi, speaking at yesterday's Citi Global Technology Conference.
"And as we can cost reduce our box as we've done with 360, we'll do that to continue to price reduce and get even more competitive with our offering."
Paul Thurrott in a recent episode commented on the on-going Microsoft fiasco hinting at more job losses and that "there's more to come".
There won't be no more acquiring game publishers from Microsoft in the future . Xbox has to pay Microsoft back. It might take two decades to do that.
I don’t understand what you’re saying. Xbox IS microsoft so there’s no “paying back “.
And MS gross profit in 2023 was over 140 billion dollars so forget your 2 decades.
Unless you mean the money MS invested in Xbox (acquisitions included) and the time it will take for xbox as a brand to gain that money back on it’s own, then yeah, that could take a while.
“There won't be no more acquiring game publishers from Microsoft in the future”
No bro, there do be is for Microsoft not acquiring for what is now if not what it be is 😂
There really needs to be a class action lawsuit here. You buy these companies just to put people out of jobs. And it’s not like something happened to derail their plans this WAS the plan. Microsoft has no business in this space at all.
Microsoft has been doing this for years. They simply want the IPs. Look at Nokia. Look at Skype. This time it simply expanded to games. Gaming is not as important to Microsoft’s executives as it was to the founders too. Bill Gates was willing to sell the og Xbox at a loss. Steve Balmer approved the red ring of death fiasco. This CEO isn’t really a gamer.
Maybe it's time though to put a stop to it and use a big giant like Microsoft as a huge example to the rest of these big companies.
There has to be a line drawn somewhere.
People like the FTC and the like went against Microsoft yet their Actvision deal was still allowed to go through yet look what's happened...it's not even Acitivisions studios aswell, it's Bethesdas.
Ninja Theory, Perfect Dark, Crash Bandicoot, Spyro, Wolfenstein 3, Dishonored, Prey, Doom, Quake... something tells me that bad things are going to happen to these entities under Microsoft.
The Xbox brand is expanding, as an Xbox mobile game store is opening this coming July where Microsoft will brings its "first-party portfolio."
“Bond adds that they will start on the web”
This will go nowhere.
Nice knowing you Xbox. This is what happens when the house never gets cleaned.
The only this MS is expanding is the amount of feculence it sprays on everyone who just want to enjoy gaming and make games.
The best thing MS can do for the gaming industry is leave and never return.
It turns out that many moons ago, Microsoft once had its eye on the Sony published LittleBigPlanet series.
Project Spark idea was decent but they quickly gave up ..
LBP was wonderful
Microsoft in a nutshell. Always tried to poach Sony employees, games, 3rd party games and devices like the depth camera that was turned into Kinect but was running on PS2 before Xbox 360. Wouldn't be surprised they wanted LBP. Just like they worked behind the scenes pushing the MLB to bring Sony's baseball game to Xbox instead of making their own.
https://www.playstationlife...
They didn't spend years trying to develop their own baseball game. They wanted Sony's game.
They're scum.
Microsoft didn't force MLB on Xbox. MLB gave Sony 2 options either go multiplat or risk losing the license.
Totally ridiculous comment.
The only exclusivity Sony had was to their own creation of The Show. Microsoft could have paid the MLB for the license just like Sony did and made their own baseball game.
Microsoft instead, groomed MLB for years in trying to poach Sony's game and bring it to Xbox. They're worth 3 TRILLION dollars. You think that's not enough money to make their own baseball game? Don't be delusional.
Microsoft spun it like they always do and told the media that they had to trust Sony with their hardware. After they put Sony in that position of not having a choice. Either go multiplatform or stop making one of their successful games. That's a no win scenario.
And what did Microsoft do? They didn't try to sell the game to the Xbox community. They put it on game pass to hurt Sony. Pushing the idea of why buy games that are $70 when you can play them in their cheap service for $10. It was a dirty tactic.
You fell for the Kool aid drink Microsoft served you instead of spitting it out. Hope it tasted good because you were fooled by Phil and the gang.
Xbox executive Sara Bond has told Axios that Microsoft spent a number of years trying to get MLB The Show onto Xbox consoles. And when it finally succeeded in breaking off PlayStation’s long-held exclusivity, the company had to “trust” Sony with pre-release Xbox Series X/S consoles.
Bond revealed that MLB The Show “always came up” in conversations between Microsoft and the Major League Baseball organization. “We always said, ‘We love this game. It would be a huge opportunity to bring it to Xbox.'” she recalled. However, when Microsoft’s efforts materialized, it put the company in an awkward situation where it had to send in pre-release consoles to a rival company.
"Microsoft instead, groomed MLB for years in trying to poach Sony's game and bring it to Xbox."
Take a nap, conspiracies are rotting your brain.
Xbox executive Sara Bond has told Axios that Microsoft spent a number of years trying to get MLB The Show onto Xbox consoles. And when it finally succeeded in breaking off PlayStation’s long-held exclusivity, the company had to “trust” Sony with pre-release Xbox Series X/S consoles.
They were too cheap/inept/lazy to develop their own mlb game, so they port begged for years and bribed the mlb to make the show multiplatform. Like i said many times, xbox brought nothing to the table their 24 years, ZERO.
"However, Healey said Media Molecule wouldn't have felt right doing that, adding it would have been "morally corrupt"."
Major kudos to Media Molecule for being an upright studio with principles.
Great, more stories like this please. Show the last of the zombies holding the line what we've been saying for years: Microsoft is anti competition, anti industry and has no interest in making games at all.
But hey, at least there's an Xbox Games Showcase to look forward to, right?
Well considering SONY just killed the series, LBP would've been dead by now either way. Though MM probably wouldn't exist by now either, so I'm glad they stayed with SONY, hopefully they don't get shut down any time soon or ever honestly.
They shut down the servers, that's millions of user created levels gone. That and dead are pretty much the same, it's also been years since 3 and they cancelled HUB soooo.
They shutdown the servers because no one was playing, no one in the community cared about the user created levels so why keep them up? Wtf you guys would never succeed in running a business.
Yea dood no one was playing so they shut off the servers. Cause people with enough common sense can't just Google why they were actually shut of, right?
Strange. Sony stated they won't be losing much money at all when they launch. Micro says the same, or even a profit.
Nintendo has been selling at a loss since launch, just announced a price drop and now are losing even more money on each console sold.
What was going on at Nintendo that Sony and Micro could make these two much more feature rich, more powerful machines and still be in a better position to make a profit. Hhhmm....
Simply can't wait to own my X1 and play some Dead Rising 3 :-)
Especially when people pick up that headset adapter and play and charge kit for their controller and any extra controllers they want also. Its extra money they simply would not have made if they were bundled in with it for €500
No it won't.