To be clear Microsoft are making money from Xbox Live subscriptions and downloadable (last gen) games, not as much from console sales.
That goes without saying as the majority of time Microsoft doesn't make money from the actual console sales themselves.
The Original Xbox was a massive money sink.
The Xbox 360's hardware took a long time to be profitable, even when ignoring the $1 billion+ bill they had for RROD repairs.
Hence why in the long run they'll drop the console side and go back to their PC roots.
Or. They will just keep making consoles and keep raking in billions.
They are a business, money talks.
2018 will be a pivotal year for them. If X1X somehow magically takes off, I might be totally wrong about what I've predicted. Right now, based on November and December X1X sales and a lack of 1st party games in 2018, I can't see the trend changing for their super duper console, just yet. Time will tell
Anyone who thinks the Xbox One X will somehow magically "take off" is absolutely delusional.
That was never the intention of that particular hardware release anyway.
Plus we have the Playstation 4 Pro as the precedent to go by.
Success? Sure. Don't conflate the differences though.
2018 could be a make or break year as far as games are concerned... Crackdown 3 has already drawn the ire of gamers everywhere with it's lacklusture visuals, Sea of Thieves could be a solid title... We might get Halo 6? There will obviously be a new Forza. And who knows what else?
2019 is what scares me though on the games front, it could be even worst than 2017.
Highly unlikely as the xbox strategy is now somewhat different to the 360 days.
To me it feels like the Xbox strategy is more like the original Xbox, just with crappier games and less exclusives.
its the xbox live subs and service where the money is being made and that remains very profitable.
Microsoft is also selling servers to run said games as well. That's been extremely lucrative for Microsoft in recent years.
Analyst Michael Pachter is very firm in his belief that this will occur by the 2020's.
I don't know why anyone listens to Pachter.