Microsoft Loses Hundreds On Every Xbox Sold

Microsoft Loses Hundreds On Every Xbox Sold
Unsplash - Mike Baumeister

Written by 

Joseph Kime

Posted 

1st Nov 2022 11:07

Xbox has had a pretty good image for the last couple of years. In the face of PlayStation bolstering its prices and fighting to keep Xbox's deal with Activision Blizzard from going through, the company has managed to keep it cool and collected.

The Phil Spencer-led company has put on a public front that has been consumer-friendly and chill on all levels, and initially being reluctant to change their prices in line with PlayStation's hardware boost has put it in good stead - but it looks like Microsoft is making more losses than it's letting on.

Xbox Is Making Huge Losses On Consoles

Microsoft Loses Hundreds On Every Xbox Sold
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Xbox

It has been reported that Phil Spencer has revealed the losses that Xbox as a company shoulders in the production of the Xbox Series consoles, and it is truly substantial.

A report from CNBC states that losses amount to $100 to $200 per console, and that the gaming giant hopes to make up for these losses with the sales of games and accessories, which historically have had greater margins for profit.

Consoles are recognised as a point at which games companies will generally make a loss, but these are huge margins of loss, and deeply concerning for the company. That is, it would be - if we didn't know that Xbox was crushing it right now.

 

Xbox's Profits Are Gargantuan, Even If Consoles Are Making Losses

Xbox consoles are making some whopping profits, but it looks like it doesn't matter, as the company is still rolling in it. The latest earnings results have indicated that Xbox has broken its own record with its latest quarter reports, cranking all the way up to $3.61 billion. Crikey.

On the other end of the spectrum, Sony is reportedly haemorrhaging PlayStation Plus subscribers since it rebranded the service - proving that both sides are struggling in some way right now. Still, Microsoft has gone from strength to strength. Despite the losses from its consoles, it's still utterly dominating the gaming space. As expected.

 

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