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The Microsoft Xbox One X will sell at a loss, according to Phil Spencer

Phil Spencer confirms that the Microsoft Xbox One X will not give benefits, on the contrary, the cost of the console is higher than that of sale to the public, but the benefits are given by video games, not the consoles themselves.

E3 2017 has been an authentic roulette of ups and downs, of information of all kinds and interesting news and some confirmations. The highlight of the event, above video games and other elements, has been Microsoft's Project Scorpio, which has been renamed Xbox One X, a console that promised a lot and that before leaving is already being compromised with titles that at the In the end, they will not operate in native 4K resolutions, as has been insisted so much by Phil Spencer, but also, this console has some more peculiarities.

We have talked a lot about hardware and what it could give say yes and what no, but we really don't know how much its components and manufacturing are worth, although we could get an idea. Phil Spencer in an interview confirmed something that he could verify without doing many calculations and that is that Microsoft will lose money with each of the consoles it sells, in terms of manufacturing costs and retail price, therefore, it does not seem a good deal for the company. We must bear in mind that only the 4K UHD Blu-ray reader should be around $ 120-150, approximately and the hard disk, about $ 204-50, therefore, we are around $ 200 with only two of the important elements of the console.

The reality is that this data is quite insignificant, since consoles usually tend to lose and with the passage of time profitability improves, but it never ends up being an optimal source of income, the true sources of income for Microsoft and Sony are videogames, that's where the money really is, in selling games like there's no tomorrow. Phil Spencer has made this point quite clear: “You have to think of hardware as part of the business, not as the part that makes the money. This is achieved by selling video games ”.

We must emphasize that there are precedents in this field, such as the PlayStation 3, which was sold at a loss, being aware that the business is in selling video games, not in manufacturing and development. It must be borne in mind that developing a console, developing the software and optimizing all the elements has a cost and that must be added to the costs of the hardware, therefore, it is difficult for a console to benefit by itself, usually give indirectly. Sony and Microsoft know it and do not hide it.

This is a model similar to that of Amazon, which has become a predominant site in the market, without generating profits. Some will have the experience of buying a product, being defective and they don't even bother to pick up the defective one and give you a new one, they directly give you a new one. Amazon is based on customer trust, that they are happy and lose as little time as possible. Microsoft and Sony know that winning € 50-100 per console is silly, because in the end the number of consoles sold will stagnate. Users will bet on buying a game and if from each game they win € 1 and sell five million titles a year, there are 5 million, which is no small feat (the figures will be infinitely higher, we all know them).

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Robert Sole

Director of Contents and Writing of this same website, technician in renewable energy generation systems and low voltage electrical technician. I work in front of a PC, in my free time I am in front of a PC and when I leave the house I am glued to the screen of my smartphone. Every morning when I wake up I walk across the Stargate to make some coffee and start watching YouTube videos. I once saw a dragon ... or was it a Dragonite?

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