Forums - Microsoft Discussion - Microsoft squeezes '$28' out of each XBox One

Nsanity said:

Quoting for other people to view.


Wishful thinking. We know Ps4 and X1 are very similar. We know ps4 is a hundred dollars less at retail than X1. And we know kinect is included in every X1 sold. So either the Sony guy was lying and ps4 is also making profit (unlikely) or the MS guy is.



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Who cares?

MS don't thats for sure. $30 profit, $30 loss... its small change in the grand scheme of things.





I'm not really here!

Link: Shipment History Since 1995


I think you'll find shipping companies and retailers squeeze > $28 out of the X1 and MS squeeze



Only 28 dollars. This is why the shareholders of MS want to get rid of Xbox business.



TheEspionage said:

This was announced months ago guys.  By both MSFT and Sony.

Xbox One to be Sold for Profit or Breaking Even - http://www.dailytech.com/Xbox+One+to+BreakEven+or+Make+Profit+on+Each+Sale+from+Launch/article33324.htm

Ps4 Sold for Loss announced by Masayasu - http://www.ign.com/articles/2013/09/20/playstation-4-hardware-to-be-sold-at-a-loss-at-launch


Quoting the important part of these two articles since the heading is a bit misleading:

XB1: "
According to Microsoft's Yusuf Mehdi, the company plans to make money on selling games for the console and the Xbox Live subscription"

PS4: "He went on to point out that the other purchases it anticipates the average consumer will make with a PS4 at launch -- such as a PlayStation Plus membership and a game -- will allow it to recover its losses."

In short, both consoles are lose leaders, although the margin for profitability is far better than previous gen.




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I can squeeze $28 dollars out of something else... but them Nazis only want the perfect man protein...







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Nsanity said:

"The Xbox One is designed to serve as a beachhead in the home for Microsoft, with the console’s capability to interact with—and interface to—other devices, such as televisions,..." Mather said.

http://www.theregister.co.uk/2013/11/27/xbox_one_price_brings_loss_to_microsoft/


OMG! The innovation! Who would have thought a console could interact with a TV?



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Wagram said:
Retailers take a cut, there's no way they're making a $28 profit.


Retailer, distribution, storage. Between the materials and the final product, you usually double the number.



kowenicki said:
Who cares?

MS don't thats for sure. $30 profit, $30 loss... its small change in the grand scheme of things.




That's a really stupid thing to say. You think executives, or especially stockholders don't care about these things?



There are many items left out of the article (and most I have seen on similar topics) that have to be factored in as part of the cost-

Not knowing what each has factored in for R and D among other things does not really allow for anyone to know what the true profit loss on the consoles are