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

Asked by BusinessIndier if Microsoft makes any money from Xbox One X hardware sales, Spencer said, "No." Pressed to clarify if this means Microsoft is taking a loss on each unit sold, Spencer responded, "I didn't answer it that way," declining to share more details.

"I don't want to get into all the numbers, but in aggregate you should think about the hardware part of the console business is not the money-making part of the business," Spencer said. "The money-making part is in selling games."

Another important element of this is that, over time, the price of components for any hardware come down, and this should be no different for the Xbox One X. This is to say, the economics of selling hardware, in this case Xbox One X, should get better for Microsoft over time.

You can get the full story here at BusinessInsider.

Taken from:

https://www.gamespot.com/articles/e3-2017-microsoft-isnt-making-money-on-the-500-xbo/1100-6450952/