Microsoft isn't making a profit with their new Xbox One X console

Posted June 26, 2017

"I don't want to get into all the numbers, but in aggregate you should think about the hardware part of the console business is not the money-making part of the business". Due to its components and its small size, the company is proud of the price of $499 Dollars. Eventually, the cost of making the console will decrease and its profit will increase. "I look at Pro as more of a competitor to S than I do to Xbox One X", Spencer said.

He said it was partly because it is more hard to tie up rights issues surrounding the old games.

The Xbox One X has a graphics processing unit (GPU) that is about 40 percent faster compared to the PlayStation 4 Pro, Spencer claims.

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It's impossible to say whether Microsoft will be making a loss on the Xbox One X, or merely breaking even, but we do know for sure that they'll be relying on selling lots of games to turn this into a profitable venture. The project will be named from now on Xbox One X and it will cost $499, being the premium option available in the Xbox series.

Xbox One X Price Too Steep?

The Xbox One X also has a superior optical drive, as the new unit comes equipped with a 4K/HDR capable Blu-ray drive, compared to the PlayStation 4 Pro which comes with an older Blu-ray/DVD drive. The console is the most expensive of this generation for its capabilities, however, it seems that the company has not contemplated making money with this system.

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Facebook/xboxA promo image of the Xbox One X, previously called Project Scorpio, as a cover photo on the Microsoft game console's official Facebook page.

It's nothing new for the console business, to be certain.

The price tag of $499 is actually right on the money for many analysts, as the price is what many predicted for the Xbox One X. The question, however, is whether gamers will be willing to pay that price, especially considering the lack of exclusives for the Xbox One compared to the PlayStation 4.

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In addition to a more powerful GPU, the Xbox One X offers higher bandwidth compared to the PlayStation 4 Pro.