April 26, 2018

Microsoft says Xbox One X's steep price tag won't turn a profit

18 June 2017, 02:10 | Rudolph Thomas

Tune in to the Xbox E3 briefing right here

Microsoft has unveiled its new console the Xbox One X

Accessory manufacturer Hyperkin will be bringing back the original Xbox controller for the Xbox One, Xbox One S and Xbox One X.

Xbox head honcho Phil Spencer has been talking far and wide about Xbox One X this week, this following the console's grand unveiling on Sunday night during Microsoft's press conference. "True 4K, all the features you saw in the briefing at $499, that value proposition is great".

Like most consoles before it, The Xbox One X will be a loss leader, with Microsoft taking a hit on the hardware, so they can make it up later on software sales.

As for the PS4 Pro, it comes with an AMD Polaris graphics with 4.2 teraflops of performance and 8GB of GDDR5 RAM. "If you just look at the specs of what this box is, it's in a different league than any other console that's out there".

Spencer, however, refused to admit that Microsoft is selling each Xbox One X at a loss, clouding the profit margin that the company expects from what is described as "the world's most powerful console". From what we can tell, it will offer more power than the PS4 Pro rival. Unsurprisingly, Microsoft isn't making money each of those consoles sold. It now appears if you pre-order Xbox One X you will also be getting a one month Xbox Game Pass trial. The company did announce "Sea of Thieves", "Crackdown 3", "State of Decay 2" and "Forza Motorsport 7", but all of those were already known about prior to E3 2017.

The added services will surely attract new buyers to both the console and more importantly to the Game Pass as well. "The focus I had on this show was games you're going to get to play in the next year". Spencer replied: "I didn't answer it that way".

"The money-making part is in selling games", he said, showing that Microsoft will rely on titles to drive up its profit from the Xbox One X.

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