This was the question gamingbolt asked Michael Pachter, analyst at Wedbush Securities. He, however, does not think this will happen. ‘No, I don’t think so,’ he said flatly. ‘[Xbox consoles] are wildly profitable. We are concerned about warring about who is first and who is second, but that’s like saying, Pepsi doesn’t sell as much cola as Coke does, why not just shut down? Or Burger King doesn’t sell as many hamburgers as McDonalds, so why not shut down? They’re both profitable, who cares? The only people who care are fanboys.’
I think he is right- if Xbox is profitable, Microsoft has no reason to quit. The question is- is Xbox profitable? I know Xbox Live is- but Xbox Live is a service that is becoming increasingly device agnostic as time goes on.
The Xbox One X’s high price is one thing- but there’s also the weakness of its lineup, in that it has no mass market appealing exclusive that will induce people to pick up on it, like Horizon or Zelda. We asked Pachter whether this will be a detriment to its sales potential.
“You know, I think it is something they should address, I just don’t know if that’s a priority to them, and I don’t know if they have an internal studio that’s on par with Sony’s internal studios, so… I don’t know,” he said. “Horizon was Guerrilla, and those guys are really good. It’s hard to come up with stuff like that. Unless Microsoft does something like buy Take-2, and develop GTA and Red Dead as exclusives, it would be hard for them to come up with something like that. So yes, they should to do it, but whether or not they are able to, I don’t know if they can.”
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Source: http://gamingbolt.com/xbox-is-too-profitable-for-microsoft-to-quit-the-market-michael-pachter
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