| DonFerrari said: It lost money mostly due to RROD on X360 and they decided to go different revenue stream because they can`t compete on console against Sony. |
Xbox did compete with PS head on. They did it last gen and beat Sony at their own game, so they can do it. However the cost of doing it doesn't fit well with a mega corp like MS.
RROD lost $1.5b for the 360, the total loss was $3b so RROD wasn't the main issue. The PS3 lost $5b and that's without an RROD issue and paid subs to help balance it out back than. The collateral damage isn't worth it so that's why they changed Xbox the following gen with the XB1.
https://www.vg247.com/2013/01/07/xbox-360-and-ps3-losses-total-8-billion-ex-sony-employee-paints-grim-future/#:~:text=Animal%20Crossing-,Xbox%20360%20and%20PS3%20losses%20total%20%248%20billion%2C%20ex,Sony%20employee%20paints%20grim%20future&text=Xbox%20360%20and%20PS3%20have,by%20industry%20veteran%20Ben%20Cousins.&text=%E2%80%9CConsoles%20like%20Xboxes%2C%20PlayStations%20%26,a%20loss%E2%80%9D%2C%20said%20Cousins.
How i see it, MS wanted to change their direction as the 360 loses isn't good enough for MS so Don Mattrick made the changes to the XB1, adding in DRM, Power of the Cloud and always online etc to move the console away from the 360 and towards a more digital future, and that's why we have GamePass, Full Backwards compatibility, Power of the Cloud (XCloud) Multi-platform releases (Steam) and cross gen games now. Those ideas are only getting pushed even further with the Series X. So here we are again, back to the original ideas of the XB1 however the difference is now, people are more accepting of the idea.
