Xbox One will break-even and could even be profitable on day one according to Microsoft
Authored by Matt Hadden
Microsoft may not have had the best run up to the launch of their console but they are still confident that they can break even and even start making a profit as soon as the console launches, something that only normally Nintendo manage.
Microsoft’s Yusuf Mehdi was speaking at the Citi Global Technology Conference on Tuesday, saying that they will “look to break even or low margin at worst on Xbox One.”
The strategy will continue which is that we’re looking to be break even or low margin at worst on [Xbox One], and then make money selling additional games, the Xbox Live service and other capabilities on top.
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.
I’m not surprised that they are hoping this is the case, everyone will be after a next-gen console and I bet a lot of people aren’t interested in all the crap PR that Microsoft have had in the past few months, they just want to play on their brand new console. It’s not like Microsoft weren’t going to sell any units, of course they will, they just won’t get sales from people that are a bit more “in the loop.”