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Forums - Microsoft Discussion - E3 2017: Microsoft Isn't Making Money On The $500 Xbox One X

Sony was a in a similar position last gen and they fought their way back with good exclusives. MS on the other hand did the complete opposite and doubled down on hardware with no real exclusives while now also losing money on each unit. No one buys a console to drool over the box. The main reason is for games.



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Aura7541 said:
I wonder what's driving up the costs. I doubt it's just the GPU, but also the cooling solution?

12GB of GDDR5 and the 4K Blu-Ray. 



Teeqoz said:
Can be interpretted to mean that whatever profit they might make from the hardware is so miniscule as to be negligible. He doesn't seem to mean it is being sold at a loss after all.

It sounds like $500 is the break even point.



Mystro-Sama said:
Sony was a in a similar position last gen and they fought their way back with good exclusives. MS on the other hand did the complete opposite and doubled down on hardware with no real exclusives while now also losing money on each unit. No one buys a console to drool over the box. The main reason is for games.

Multiplatform games out sell exclusives which xbox has the best versions of regarding consoles. Also, xbox does have a lot of console exclusives.



Superman4 said:
Aura7541 said:
I wonder what's driving up the costs. I doubt it's just the GPU, but also the cooling solution?

12GB of GDDR5 and the 4K Blu-Ray. 

The "ultra hd" drive I think we found out was like 15-20$ more or so, in a older thread.

The 4 GB extra ram, probably isnt that big a factor either.

 

The main reason is most likely the size of the chips (apu (cpu+gpu)):

PS4pro : 232mm^2

Xbox One X : 360mm^2   (ms said this at E3)



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Can't wait for someone to take it apart and do a cost breakdown. Who is it that usually does it?



Aura7541 said:
Teeqoz said:
Can be interpretted to mean that whatever profit they might make from the hardware is so miniscule as to be negligible. He doesn't seem to mean it is being sold at a loss after all.

It sounds like $500 is the break even point.

Pretty much. (although to expect something that's being manufactured and sold on a large scale to make exactly $0 is unreasonable, so I opted for negligible profit instead. Though it could be negligible loss too.)



Snoopy said:
Mystro-Sama said:
Sony was a in a similar position last gen and they fought their way back with good exclusives. MS on the other hand did the complete opposite and doubled down on hardware with no real exclusives while now also losing money on each unit. No one buys a console to drool over the box. The main reason is for games.

Multiplatform games out sell exclusives which xbox has the best versions of regarding consoles. Also, xbox does have a lot of console exclusives.

And exclusives sell more consoles which makes pretty much everything else irrelevant. It doesn't matter if third parties look prettier and run better on a console if there are certain games that aren't on it at all and are on another system.



Mystro-Sama said:
Snoopy said:

Multiplatform games out sell exclusives which xbox has the best versions of regarding consoles. Also, xbox does have a lot of console exclusives.

And exclusives sell more consoles which makes pretty much everything else irrelevant. It doesn't matter if third parties look prettier and run better on a console if there are certain games that aren't on it at all and are on another system.

Yet in the top 30 games (more games than the usual person buys) sold on each platform is mostly multiplatform titles. That's why Sony and now Microsoft are releasing their games away from the holidays. 



Normchacho said:
That's a weird call for a niche product. I mean, it's too expensive to have a major effect on user base, but they're going to rely on the extra software and other secondary revenue streams to make money off the system.

it's part of a larger agenda and initiative to bring the Xbox brand closer to just PC gaming, Microsoft is hoping that they can develop a big prescense in PC gaming in the future I think (particularly with Xbox Live). By having higher end home consoles and such I think it's a step toward bridging th cap, then eventually maybe just a PC with a emphasis on gaming.

Time will tell though. Otherwise I'm not sure what the point is. Some devs will claim to love a home console at higher specs, but a huge percentage of devs aren't triple A and pushing out Crysis like games anyway