Xbox One per unit (Console) price.

"But with economies worldwide struggling to maintain a foothold in this "New economy." I am curious as to why any company would be willing to accept loses just to."

Losing money to sell an item can actually be an investment. Why? Well, you are installing a base of users the become potential customers to your service. These customers, in terms of the Xbox, may buy games. Possibly buy other things. And you tie that
experience into the Windows ecosystem. An absolute no-brainer. I said well before Xbox One was announced that MS was going this route. They want to be unified. Get people into the system. Plus, when people are into something like this they want to stay.
They buy content and that keeps them in. Backwards compatibility is big in this way. It puts MS in a position to draw in people who have games already. It allows them to sell those games on the One if someone needs them. If creates a solid marketplace.


@Galactic I think that the material will have dropped enough for them to still be making money. But then that could be wrong and is just the way I see it.

 

the initial release.. MS was making about $112 per console... your beloved PS at the time as making only $43 per this was pre price cuts... figure no kinect, they stillmake a small green number per

And Electro.. seriously.. how do they make money?? hmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm

XBL? Games? DUH

 

www.techinsights.com/.../ps4vsxboxone-bom.jpg

 

@kingvas. This thread was born when someone posted a reply in another thread that arroused my curiousity.

Where it goes from here is anyone's guess, as no-one can prove any of the things they read online or speculating about is anywhere near correct.

 

[quote user="ElectroFlying"]

For those who like a challenge, and are savvy enough to search out a matter.

Is Microsoft making money for each Console sold, or losing money?

If they are losing money, then how much exactly? And more importantly...

How are they making up the cost and still making a profit?

[/quote]

This is a great question that illustrates a harsh internet forum reality.

People here don't really know what they're talking about.

From "Destiny" to "The True Cost Of The XBox ONE" all you're ever gonna get here is someone's "best guess".

 

@kingvas, if you cant see how console sales/ profits affect you directly as a xb1 owner then your very short-sighted.

@ tohell Microsoft reported that xbox one had lost them 400m by November last year, Sony was turning profit on the console hardware by may the same year.

 

August not November sorry.

 

This was after the price drop no doubt... even still $400M is like the average Joe finding a $1 on the street to giants like MS..

But the addition of XBL and games and licensing... I am sure that (-)400M is now a +

 

Most likely I know Microsoft said that at 499 usd they would only break even.

 

As Guerrero somewhat alluded to, selling the Xbox One at a slight loss could be a big win. First, there's supply & demand, selling the console cheaper = more people will buy it. Then they could have something like the Razor-Razorblade model, where they
sell the razor at a loss, but the razorblades cost a bit of money. So, they get the console into a bunch of people's homes and then make their money back with app purchases or the fees they charge publishers.

What exactly is the point of this thread though? I mean, lets say you find out how much all of the parts cost... what are you attempting to find out?

 

@Jambo, maybe all of the Xbox One forum financial experts (XOFFE's) should sit down with MS and help them figure out marketing, profiting and margins... I'm not short sighted, I could care less if MS is making 100% profit or -30% profit on each console
sale. Like I said before they are in business for a reason, and being a huge technology designer/manufacturer they have things under control.

-

 

@kingvas your already seeing the effects now with exclusivities, due to the sales difference ms needs bigger money hats than ever and before you start listing exclusive's remember that both titanfall and sunset overdrive were turned down by Sony.

As for ms this was the generation they told shareholders they would get there due's, the console was supposed to be profitable from the outset and its safe to say it didn't go as planned.