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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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....
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.
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 $699 entry point they were losing money (due to the new technology and Blu Ray at the time)
And lets go with the obvious FACT. Even IF there was an NDA it's non disclosure not non develop, so NO they aren't just keeping it a secret from developers
http://www.gamepur.com/news...
"Links to Patcher"
This Guy
I dont even know where you are getting these breathing room numbers. I actually think the MS is making the wiser choice between the 2. If you look at the parts in the Xbox One they will drop in price faster than the Ps4. The thing is the Gddr5 memory. Gddr5 memory is a specific piece of hardware for a specific job. Its uses arent goingto change. You are not about to see computers changing their design to use graphics memory as general purpose memory so it will stay relatively expensive. Everything else will lower in price steadily over time.
I would expect in 4-5 years the X1 actually being slightly cheaper than Ps4 or the pressure from MS keeping the Ps4s profits at bay keeping up with the price cuts.
I do know they'd be sitting even prettier had it not been for the RROD.
Just checked and Sony's been making money off of the PS3 since 2010.
I do agree about the HD transition. I remember it being hard on the devs too.
Microsoft are competing with Sony, who'd of thought that?
Xbone inferior hardware more bulky 499$.... more than 100$ profit good job M$
This gen isn't over yet, even if the ps4 is already here.
I bought a brand new 60" 120hz LED tv for my preordered PS4!
http://reviews.cnet.com/830...
Fool!
Samsung use to have the I am so cheap compared to sony but not anymore- their tvs are just as highly priced since they got real popular. But to comment on samsung they are known for their ultra sharp hd images which gives the pq a crytal clear look.
Sharp are solid nothing outstanding but solid- good tvs for the money when buying 60 inch+- thats what they are known for- with good black levels in mid range models.
LG are differnt than sharp sony and samsung and manufacture ips led rather than samsung/sony/sharp variant of spva, gamers love lg ips led computer monitors. Their tvs are solid and their smart tv features are just as good as samsungs. The lower model ranges for lg tend to suck compared to the competition in pq- but i would only recommend lg 7000 series+, very solid.
Finally panasonic are known for their amazing plasmas for the money as well as high end models with high end quality- their led tvs lineup sucks- they manufacture ips panels and are of low grade (Toshiba is guilty of this as well- stick to lg for ips.
Yeah i know too much about tvs but for those of you wondering about tvs- this is am excelellent sum of brands in general.
Fyi if you go plasma remember the whites are not that great- not important for movies but for videogames it is since many games use pure whites- leds are very strong in the department and high end leds with local dimming take care of the black levels that plasmas excel in.
Now if they got rid of the Kinect I could see them making a definite profit on each Xbox One unit sold.