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Xbox One could be sold for a profit at launch

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."

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videogamer.com
theWB27970d ago

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....

Transporter47970d ago

The Gamepad is what makes them sell it as a loss.

ArchangelMike970d ago

Nintendo forcasted huge profitsd for the Wii U, thsat was based on projected sales. However nobody bought the console, and it became a loss.

Sony basically did away with their proprietary Cell chip, and could therefore significantly lower the cost of manufacture.

Microsoft, well get rid of the mandatory Kinect and you'll make much more in profits.

hakeem0996970d ago (Edited 970d ago )

The PS3 wasn't profitable during 70% of it's life cycle .Odly enough Netflix and free PS3 with a purchase of a Sony Tv promos are the main reason the console became profitable because a lot of people bought the PS3 as a streaming device and bought a few games too. That's y most of my friends got one . It's nice that Sony will finally make some money this time.

UnholyLight969d ago

@hakeem0996

Funny all the downvotes. Due to the fact that at least the 70% number is true. Sony spent a long time in the hole with every PS3 manufactured they were taking a huge loss. Even at the $699 entry point they were losing money (due to the new technology and Blu Ray at the time)

DonFreezer970d ago

What they say is meningless. If the ps4 is 40% more powerful ofcourse they are losing money but are trying to hide it.But since the rumours about the dgpu of the One seems kinda legit for Sony not losing money.

DoesUs970d ago

The failings in your post would baffle even the greatest of minds.

Deadpoolio970d ago

LOL There is NO DGPU...None, your that stupid that your stretching now...If there was it would be more than $500 bucks.....

And lets go with the obvious FACT. Even IF there was an NDA it's non disclosure not non develop, so NO they aren't just keeping it a secret from developers

B-radical970d ago

id laugh if you were right tho

MeatyMuscle970d ago SpamShow
YNWA96970d ago

Well, I doubt the greatest of minds would ever be on this site...

+ Show (2) more repliesLast reply 970d ago
corvusmd970d ago

Actually most estimates put Sony making $25 profit per console at launch
http://www.gamepur.com/news...

Nitrowolf2970d ago (Edited 970d ago )

"Most estimates"
"Links to Patcher"

This Guy

Eonjay970d ago

Several cost projections put the manufacturing cost at $400... They also factor in branding, customer service and advertising cost into the price of their console. By every estimation, a Kinectless Xbox would be at least $100 cheaper. If they are really that persistent about including it, they must really believe that they can make people want one as well. The profits will be slim, but they do have at least $50 or breathing room with each sale. Sony has about $100 to $125 in breathing room.

edonus970d ago SpamShow
iamnsuperman970d ago (Edited 970d ago )

[email protected] This is Nintendo's first HD console so they are new to the whole process. Then add the tablet onto that and it is going to cost. Microsoft and Sony need this profit break generation (going HD cost a lot of money last generation). Nintendo are in that costing generation. Sony and Microsoft have that experience that Nintendo is only just getting

theWB27970d ago

I really don't know about Sony...but I do know Micro has been making a profit off of 360 hardware sales for quite awhile now...coupled with the Live earnings they're pretty.

I do know they'd be sitting even prettier had it not been for the RROD.

Just checked and Sony's been making money off of the PS3 since 2010.

I do agree about the HD transition. I remember it being hard on the devs too.

imdaboss1970d ago

lol xbone going to crap out on everybody on launch day..ms keep on doing changes trying to compete with the ps4..

HolyDuck970d ago

Wow, you're really smart.

Microsoft are competing with Sony, who'd of thought that?

black0o970d ago

they went after the most common parts on the planet "PC" with only a little tweaks

PSjesus970d ago

if PS4 399$and Sony selling it for profit
Xbone inferior hardware more bulky 499$.... more than 100$ profit good job M$

Flames76969d ago

Sorry but sony has already confirmed that they will be losing money on each PS4 sold for the first couple of years.It will join the 5 billion loss the PS3 has takin and the 2 billion the PS Vita has taken.Xbox One will be making a tiny profit day one just as the article says.Xbox division has made billions in profit since september 2007 unlike the billion the Playstation division has lost his gen

+ Show (8) more repliesLast reply 969d ago
TheKingWilliamV970d ago

Simply can't wait to own my X1 and play some Dead Rising 3 :-)

FanboyKillerwitFacts970d ago TrollingShowReplies(3)
andrewsqual970d ago

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

True_Samurai970d ago

And how do you know? Are you an insider? Do you work at Microsoft? No? Well than your statement is invalid

aviator189970d ago

I wouldn't mind him much.

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