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Forums - Sales - Another price-cut for Microsoft? How much money are they losing with Xbox One?

Really heartening to see how playstation fans can cross the aisle to the MS fans by being concerned about Microsoft's finances. And I thought nothing would bring these two together. In real hardships you will see who your real friends are.



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Xbox One owners buy almost 4 retail games and some get Xbox Live with each Xbox One. MS can afford to lower the price. Also, the game that's bundled is digital so there's no manufacturing disc and shipping costs. 



"another"? This is the first.



 

I don't know if Microsoft profit from it or not but I think it cost less than $350.



Sentient_Nebula said:
smroadkill15 said:
Why does it matter? If any of the three companies can suffer from a loss, it's MS.
You make it sound like a price-cut is a bad thing? The only thing that could be bad about the situation was if MS wasn't being competitive.

Of course MS can take the loss. But they're not in the console business to "win". They're in it to make money. It doesn't matter if Xbox One sells 10 trillion copies if it won't make money.


they are in the console buisness to crush sony.  and they are failing.

they know that they cant make big money as long as the ps is around.



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MS will be just fine. . .and I'm pretty sure there not in the same boat as Sony were with the PS3, where pretty much every sale just lost them even more money.

I'd guess that they will be breaking even on the sale of the hardware, and will be relying on further purchases from each sale of XBL membership or games to actually make money, and that's fine.

Not sure why the ponies are so concerned by MS selling less consoles than Sony. High sales numbers do not always relate directly to profit. .You only have to look to Sony to see that.
MS does not need to sell more than Sony, it just has to be profitable, and so far they have been better at that than Sony.



Well they can get the game for around $30. No money for the retailer and in fact as they're the publisher of Sunset Overdrive they can get that even cheaper

But they're clearly losing money on each console, not PS3 levels, but not ideal. They've already done some of these discounts in other parts, see the UK FIFA bundle, but I think they do need the sales

Still don't understand why there's no Master Chief Collection bundle. I know my friend would buy one in a heartbeat



Munkeh111 said:
Well they can get the game for around $30. No money for the retailer and in fact as they're the publisher of Sunset Overdrive they can get that even cheaper

But they're clearly losing money on each console, not PS3 levels, but not ideal. They've already done some of these discounts in other parts, see the UK FIFA bundle, but I think they do need the sales

Still don't understand why there's no Master Chief Collection bundle. I know my friend would buy one in a heartbeat


So that can be a game people buy for $60



Protendo said:
Sentient_Nebula said:
There was some information somewhere regarding how much each console cost to make.

I think the Xbox One w/ Kinect was $471. Without would cost about $395. This is at launch however. But I doubt production costs would've dropped too significantly.

This, combined with bundling games (Publishers aren't going to give out bundle copies for free!) Microsoft is definitely losing at least some money on each console sale. Other than the 1TB CoD bundle. They'll have to rely on software royalties on future purchases, and get some stable income from XBLG subscriptions.

... the price of DDR3 actually increasing since launch ...

 

Don't use prices for consumers to infer what hardware manufacturers pay for chips/parts.



Fine, i'll buy one.