Xbox One may be sold at a profit from day one
Xbox chief marketing and strategy officer Yusuf Mehdi said at the Citi Global Technology Conference yesterday (via Seeking Alpha): "We're looking to be breakeven or low margin at worst on hardware and then we make money selling additional games, the Xbox Live service and other capabilities on top.
"And as we can cost reduce our box as we've done with 360, we'll do that to continue to price reduce and get even more competitive with our offering."
Mehdi also said Xbox One is currently in full production after Microsoft boosted the system's CPU from 1.6 GHz to 1.75 GHz.
"From a market demand perspective we've been sold out on pre-orders of Xbox for couple of weeks now," Mehdi continued. "We've built more than we've built for an Xbox launch. We are on track to have the biggest launch we've ever done by a wide margin for a console. I expect there will be multiple millions of people enjoying Xbox through the holiday."
Microsoft said last month that Xbox One's launch had been delayed to 2014 in eight European countries due to Kinect localisation issues rather than supply problems. Xbox One will now launch in 13 markets this November priced at £430 / €500 / $500. The Xbox One release date will be announced later today, a pair of UK retailers suggested this morning.
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Related Forum: Xbox Forum
Source: http://www.computerandvideogames.com/427744/xbox-one-may-be-sold-at-a-profit-from-day-one/
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Comments
-RawPosted:
BreadingLightyear Microsoft is stepping up their game, it's really nice to hear they're doing all sorts of stuff to get even more buyers.
they only done it to compete with the ps4
Why bother stating the obvious.
TomorrowLandPosted:
This will probably be one of the biggest amount of pre orders in history when you think about it. They only come out every 10 years or so...
MonokumaPosted:
Lightyear Microsoft is stepping up their game, it's really nice to hear they're doing all sorts of stuff to get even more buyers.
they only done it to compete with the ps4
Dr-PonyfilePosted:
Personally the DRM Was a PR stunt in my opinion to gain more customers when they changed it. But personally its good that they are selling at a small profit before game royalties etc.
KatsumiPosted:
Dr-J Nice! Glad to see MS is still doing good after that drm hate. I been on boat since day 1
They recovered from the whole DRM thing pretty well, commendable seeming that i didn't think they where going to do as well as they are.
Dr-JPosted:
Nice! Glad to see MS is still doing good after that drm hate. I been on boat since day 1
MentalistPosted:
Microsoft is stepping up their game, it's really nice to hear they're doing all sorts of stuff to get even more buyers.
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