DirtyP2002 on 08 August 2014
We had this before...
"While the Xbox Platform’s revenue increased by $1.7 billion, the cost of said revenue increased by $2.1 billion. Both the differences point at the Xbox One’s launch as their primary cause. That’s a $400 million difference between increase and decreases of gross margins."
The cost of said revenue increased due to a shift from 360 to Xbox One.
You sell a highly profitable product on 2013 (Xbox 360) and then you sell a product with a small profit margin in 2014 (Xbox One). Of course the cost of revenue increases, but it is still a profitable product. Nobody lost 400 million USD here.
Imagine not having GamePass on your console...
