Let's do some basic math:

iSupply estimated the manufacturing costs of the XBox Slim at around $310. (I think that is a little too high doing my own back-of-the-envelope-calculation, but whatever).

When the XBox Slim arrived here in Europe, it sold at $249 (and it still is as of Dec 7th). That was/is the shop price that includes tax, (a maybe reduced) store margin, and a new AAA game (Fifa 17 where MS has to pay the distributor full margin). So in the end, Microsoft got/gets less than $200 for every XBox S sold.

Compare that with the above iSupply estimate and you get a rough idea of just how much money MS is losing on hardware. Obviously the higher-ups at Microsoft won't allow that forever, whether XBox loonies continue to buy $150 elite controllers or not.

I know it and i'm so satisfied by that! Not just selling more than PS3 but also profiting a lot unlike PS3 which was a financial disaster... That's awesome!

As regards MS, xbox division it's the least significant division of MS...

They make insane amount of money every quarter! For example they're going to drown from the profits of the expensive/overpriced well-selling surface book.

Of course, it would be better to make profit on hardware, losses are not a good thing and disgruntle  investors but MS isn't relying on xbox... Also, I don't like the fact that they have burnt so many money on xbox division but they they can easily afford to do that, hence they care more for the installbase size/commercial success, and profiting on software/online subscription by extend.

They can sell it for 150 if they want and they won't get in trouble, but of course that wouldn't be wise move for obvious reasons...

If xbox had become MS biggest division, and they would rely on it, then they would be under pressure to make profit on hardware...

@normachacho this reply is also for you...

P.S

I'm not an xbox fan, so some people may not like to argue with a non xbox fan who's defending it... eh?

They should keep it at 250 without a game next year. Then in he Holidays they could even try to do it for 199 and sales would go through the roof.

That's not how business works, Microsoft turn massive profits and with the capital they invest into the xbox divion is clearly below their normal standard, long history of investors wanting them to sell off xbox.

PS stop bringing crap fanboi talk into it, learn to have a mature discussion. 

At this point, I'm almost certain that is exactly what MS will do. I do however feel they also can't do it because the basic premise of their game anywhere initiative is that no Xbox gets left behind. So every game playable on the scorpio will also be playable on the XB1 which means there will no doubt be a PS4 version. 

Sony also buiding as big a lead they have built so far means that by the time the scorpio is released there would be at least 70M PS4s out there. There isn't a dev on the planet that would forgo an install base that large and build exclusively for the scorpio. As long as the scorpio doesmt there a number of exclusive games it can't brand itself as a gen 9 platform. It will still be competing with the PS4. 

MS hasn't done poorly this gen, the PS4 is just doing a lot better. If MS were smart. they would be positioning themselves to better compete wirh the PS5 by investing in lots of new IPs instead of doubling down on a power war. But it seems the PS2/XB era didn't teach them anything. 

Why did I say that this right? I just did what gribble did, say something based on nothing! 

Αs for xbox one profitting, check my comment above... I'm pointing out that MS has lost a lot of money on this division, which is something that I don't approve, neither investors I would guess, but  they have a huge leeway to do it...

Hiding numbers usually means that they are not good. Nobody tries to hide good numbers in fiscal reports, they want to brag about it as much as they can.

It's quite clear for all companies. Take Sony. We know exactly how many PS4 they sold. We normally have a direct update on it more than once per quarter. Vita? Nobody knows, Sony won't release any numbers.

In for the kill, lol. Reminds me of "it begins".

Anyways, nice price. As good as BF. Should push some sales. Some of the analysis and speculation in here though is just.. yikes.

Xbox fanboy? See you after two, three, four days? Just because you don't like my opinion, don't deem it as an immature standpoint of an xbox fanboy ( I'm not a fanboy in general, not even an xbox fan ) .

At least, I'm providing arguments not plainly assuming things and I have writed an argument from business perspective...

Do you see me applauding bleeding money?

P.s

Thanks for  the offense! With this behavior you prove me right... We cannot have a mature discussion with insults!

It's just an opinion folks. There's no need to invest 'emotionally'. I could be completely and utterly wrong!!! I don't care.