Microsoft Won’t Be Making Profit From Selling $500 Xbox One X

Recently Microsoft unveiled the Xbox One X at the E3 2017 and also announced that the console will be launched on 7 November 2017 with a price tag of $499. which is $100 costlier than its rival PS4 Pro but justifies the price with its beastly specification which is certainly more powerful than the PS4 Pro.

But despite selling it for a price of $500 the tech giant won’t be making any profit from selling it. In a recent interview with Business Insider Xbox Head Phil Spencer, was asked if Microsoft will be making any money selling the Xbox One X to which he replied “No”.

When asked if the company is taking loss for each console sold  to which he answered “I didn’t answer it that way,”

And further added that the hardware selling is not the money making part of its business

“I don’t want to get into all the numbers, 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.”

It’s surprising that the company won’t be making a profit even at $500 price and are looking forward to making money by selling games. though profit making on Xbox One X is not totally out of the picture as over time the production cost will come down and it may see a better result in future.

But selling games for profit alongside several other competitors just doesn’t feel right, does it? that’s where the Exclusive games strategy comes to play.

Recently there has been a surge of exclusive games in the market like the Sony’s exclusive deal with Activision for PS4 exclusive Destiny content.

And though earlier Spencer said that he is not a fan of exclusive content Microsoft itself has announced at E3 that they are coming up with 42 games out which 22 games are console exclusive. with profiting from hardware out of the way exclusive games seems to be the answer. more the exclusive games more will be the sales of both the console and the games.