The recently announced Xbox One X console is considered the most powerful game console on the market, but at the same time it is also the most expensive. The $ 500 price tag might scare away console gamers accustomed to more modest price points. For example, the Xbox One S model costs exactly half the price. But despite the high cost of the console, Microsoft will not be able to make money on its sales - at least at the start.
In a conversation with Business Insider, Xbox CEO Phil Spencer said Xbox One X sales would not make money. That is, the cost of production and components will be at least $ 500, or even higher.
"I hate to get into numbers, but you shouldn't think of the hardware side of the console market as the profitable part of the business. The profitable part is the sale of games," said Phil Spencer, CEO of Xbox.
There is an assumption that Microsoft will not only be unable to make money on the Xbox One X, but will also sell it to itself at a loss. This practice is not so rare within the console market. Xbox One X is equipped with powerful hardware and other gadgets like a liquid cooling system. And all this in a fairly compact package. Is Microsoft asking that much for such a console?