From launch, Xbox One will at least break even
Recently, Yusuf Mehdi revealed that every sale of Microsoft’s upcoming Xbox One will break even at the very least. He suggested taht the console will actually make a profit off of each and every unit sold from the launch.
This may not sound newsworthy, but it should be noted that many consoles tend to be unable to turn a profit at launch. Nintendo consoles have typically been the exception to this rule, but Microsoft aims to join their ranks.
Said Mr. Mehdi, “The strategy will continue which is that we’re looking to be break even or low margin at worst on [Xbox One], and then make money selling additional games, the Xbox Live service and other capabilities on top.”
He went on to add, “And as we can cost-reduce our box as we’ve done with 360, we’ll do that to continue to price reduce and get even more competitive with our offering.”
Finally, he stated that Microsoft will continue to support the Xbox 360 for another 3 years, during which time he expects to see the release of over 100 games.