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Xbox One Not Being Sold At A Loss, MS "Looking To Be Break Even"

Posted on Friday, September 6 @ 11:00:00 PST by Alex_Osborn

Microsoft is releasing Xbox One at $100 above the competition. The console's $499 price tag is believed by many to be so high because of the Kinect. You'd think that Microsoft would be losing money on the console, seeing as how impressive its new motion camera is and the company's unwillingness to match Sony at $399. Believe it or not, that is actually not the case.

During the Citi Global Technology Conference, Microsoft's Yusuf Mehdi revealed that the company isn't expecting to suffer a loss on each console sold. "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."

Do you think this is a wise move by Microsoft? Usually console manufacturers lose some cash on the hardware side and make it back on software. Does the device merit the $100 bump above the PS4's price tag? Let us know in the comments below.

Tags:   Xbox One, Microsoft

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