(Business Perspective) Does MS really need Xbox Hardware?

[AJNShelton]

DonFerrari said:

I don't need Xbox personally, but you are wrong on X1 or Series burning money from MS. They may not have high profits (MS doesn't show the numbers), but the HW itself hardly is losing more than 1 or 2 games worth of profit, so considering the 10+ average it console sells and the subscriptions the HW itself is advantageous to MS.

Daniel Ahmad suggested the mere profits they were making on games and services were probably overshadowed by the loss they make on hardware, during the Epic vs Apple trial.

To clarify the above. $2.2bn is not Microsoft's final profit on gaming. That's just gaming software and services profit.

You have to account for the loss that Microsoft takes on hardware, so the actual profit from Xbox would be much lower (or even negative)

— Daniel Ahmad (@ZhugeEX) May 5, 2021