Microsoft Says It Never Profited From Selling Xbox Consoles (hardware)


Microsoft: The trial of the case between Epic Games and Apple continues to yield important information about other companies. This time, Microsoft confessed that it has no profits from the sale of Xbox consoles.

Although not exactly a novelty, there are not many opportunities for companies to talk about this situation. Lori Wright, head of Xbox Business Development, spoke about the situation.

“How much is the profit margin Microsoft has from selling Xbox consoles?” Asked Epic Games lawyer Wes Earnhardt during the court session. “We don’t,” said Wright, who was summoned as a witness in the antitrust case. “We sold the consoles at a loss,” she added.

The Microsoft executive went further and replied that the company never made a profit from hardware sales. She explained that this financial loss is offset by the sale of games and subscriptions to services, such as the Xbox Game Pass.

Known situation

Despite the sincerity, Wright’s lines do not cause as much astonishment. Daniel Ahmad, an industry analyst, explained to the VG247 website that companies have lived with this scenario for some time and that, yes, the lost money is recovered with first-party software and a slice of third-parties and DLCs.

The expert said that in the current generation, both the Xbox Series S / X and the PlayStation 5 are being sold at a loss. Sony also confessed this situation at the beginning of the year, in a report that pointed out that the choice of the price of the device already indicated that it would not pay for itself (at least in the first years).

So, what do you think of the information released in the process between Epic Games and Apple? Leave your opinion in the comments section below!


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