Xbox: Microsoft has always lost money with its consoles

News business Xbox: Microsoft has always lost money with its consoles

Among the much information published today, one in particular has attracted attention. It was communicated by Nick Instead

, Reporter for the video game industry for protocolthat covers the process. Indeed, after the passage of Nvidia at the top, Epic games brought Lori Wright, Vice president of games, media and entertainment for Microsoft. She was asked first the relationship between Apple devices and Xbox. She specifically stated this Xbox was never seen as a replacement for these devices, but that almost all Xbox users have a smartphone.

We certainly don’t see the iPhone as a competing device. We don’t see the iPad as a competing device (…)

But the most interesting comes next when it was Lori Wright asked about the margin that Xbox has achieved for sale of Xbox consoles:

Wright confirms that the Xbox brand is voluntarily losing money.

“What is Microsoft’s margin on Xbox console sales?”

“We don’t. We sell consoles at a loss.” When asked if Microsoft ever made a profit from the sale of Xboxes, Wright replied “no”.

Manufacturers often state this Selling machines is not profitableand that is the sale Services and games this enables them to recoup their costs. An observation that can be made especially for Microsoft, especially through Record results for the Xbox division in the first quarter. This affidavit from Lori Wright is therefore not surprising in itself, but it is at a time where Microsoft no longer gives exact numbers When it comes to the sale of his machines, percentages and data on services are preferred.

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