Technology

Microsoft says it has never made a benefit from the sale of an Xbox console

Microsoft has never made a benefit from the sale of an Xbox console, the organization affirmed in court on Wednesday.

The razor and blades business model has long been the standard for console producers, which generally sell gadgets at a misfortune yet bring in cash from the software and services accessible for the hardware.

All things considered, the ongoing Epic Games versus Apple preliminary keeps on bringing to more extensive public consideration the sort of sensitive data organizations would prefer to leave hidden.

Xbox business advancement VP Lori Wright, who is a third-party witness for the situation, was asked by Epic lawyer Wes Earnhardt “how much margin does Microsoft earn on the sale on the Xbox consoles?”

“We don’t. We sell the consoles at a loss,” she responded, according to Protocol.

Inquired as to whether Microsoft has at any point procured a benefit on the sale of a Xbox gadget, she said “no.”

“Hardware being unprofitable certainly played a bigger role in the late 90’s and early 2000’s (oh and PS3 era lol),” Niko Partners senior analyst Daniel Ahmad tweeted in response to Wright’s testimony.

“Both the PS5 and Series X/S are being sold at a loss right now, but will become profitable down the line most likely.

“The PS4 was probably the first Sony console to flip the above concept somewhat,” he suggested.

“While Sony aggressively cut the price of PS2, for example, down to $99, the PS4 maintained a $299 price point for multiple years and was profitable.”

Ahmad additionally called Nintendo “somewhat of an outlier as “Switch was built to be profitable asap.”

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