A Microsoft executive admitted that the company is not making a profit from selling Xbox consoles. In fact, Microsoft has confirmed that it is selling Xbox consoles at a loss.
This statement was made during the Epic v Apple trial. When asked how much Microsoft makes on Xbox consoles, Xbox Business Development Leader Lori Wright said, “Not at all, we’re selling consoles at a loss.”
Epic Games’ attorney asked an additional question: “Has Microsoft ever made a profit from selling Xbox consoles?” To which Wright replied in the negative. However, that doesn’t mean the Xbox brand isn’t making a profit for the company.
The gaming division is a profitable and fast-growing business for Microsoft. The console gaming business has traditionally been based on a hardware subsidy model. Gaming companies sell consoles at a loss in order to attract new customers. Profit comes from sales of games and subscriptions to online services.
Microsoft
We will remind, this week started the long-awaited trial in the case of Epic Games against Apple. Within three weeks, representatives of Epic Games, Apple and other companies that are in one way or another connected with them should give their testimony.
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