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| Microsoft sells Xbox platforms at a loss |
Microsoft executives admitted that the company didn't make any profit from Xbox sales alone.
The approval was part of an attempt between Apple and Epic Games to confirm that Microsoft sold the Xbox console at a loss.
When asked how much Microsoft is benefiting from Xbox, Lori Wright, the company's Xbox Business Development Manager, said, `` We don't, we sell game consoles at a loss.
An Epic Games attorney asked a question: Is Microsoft making money selling the Xbox console? Wright replied: No.
Microsoft and Sony usually support devices early in the platform's life cycle, but the cost of these early components tends to decrease over time.
These lower costs also mean that the retail price of the platform will decrease over time.
The Xbox One S breakdown shows the estimated hardware value is $ 324, which is $ 75 less than the 2016 release price of the 2TB version of the platform of $ 399.
Microsoft also released an offline version of the Xbox One S two years ago, which is also likely to sell at a loss.
Microsoft and Sony have similar business models on the Xbox and PlayStation platforms, except for Nintendo.
In court documents, Microsoft ruled that the hardware was a loss for Sony but a gain for Nintendo.
The reason for the current discussion about costs lies in the beta from Apple and Epic Games, as the latter is not satisfied with the commission for Apple's purchase within Fortnite. However, Apple believes that "Epic Games" will likely also reject Microsoft or Sony on similar terms. Commission rate.
The lawsuit produced hours of testimonials proving that the iPhone looked like a computer or Xbox, and discussions on both open and unlocked platforms.
Microsoft seems to believe that there is a difference between Xbox and PC and they have lowered the PC Game Store commission to 12% while the Xbox Store commission has stayed at 30%.
Microsoft clearly wants to keep its platform business model and has been working hard for many years to push the gaming industry toward digital games.
The software giant has millions of active monthly users and Xbox Game Pass subscribers and is making up for the loss of its platform.
A Microsoft spokesperson said: With over 23 gaming studios making games, there are over 100 million active Xbox players every month and 18 million Xbox Game Pass subscribers across all platforms. Templates, cell phones and computers. Hence, the gaming business is profitable. a plus.
He added: Gaming platforms have traditionally been a model for hardware support. Game companies sell game consoles at a loss to attract new customers. Selling games and subscriptions to services online is profitable.