3 ms·
Microsoft almost certainly still loses money on the Xbox itself.
by Fede_V 5y ago
Microsoft almost certainly still loses money on the Xbox itself.
- creshal 5y agoEvery console loses money on the hardware, because you'll immediately make up for it with software sales. Stadia's still struggling with the latter part.
- dbish 5y agoYeah, generally gaming hardware is a loss leader
- woutifier 5y agoMicrosoft recently confirmed that they have always lost money on their consoles (during the Apple vs Epic proceedings). In contrast, Nintendo usually makes a profit on selling their hardware.
- kevingadd 5y agoAFAIK Nintendo is not necessarily in the business of losing money on hardware, especially if you count accessories like their controllers. I'd need to see numbers to believe that they lose money on the Switch, I suspect that thing is profitable.
- majewsky 5y ago> I suspect that thing is profitable. According to a Bloomberg article from January 2017 (just before the release of the Switch) concerning Nintendo's yearly earnings report, > While game consoles are usually sold at a loss early in their life cycles, the Switch will be profitable from the start, Nintendo said. Link: https://web.archive.org/web/20170131084504/https://www.bloomberg.com/news/articles/2017-01-31/nintendo-beats-profit-lifts-forecast-on-pokemon-ahead-of-switch https://web.archive.org/web/20170131084504/https://www.bloom... (the URL also works without web.archive.org, but the current version contains a paywall)
- alexpetralia 5y agoThis is the "SaaS-in-a-box" business model.