E3 2017: Microsoft isn't making a profit on the Xbox One X

Xbox One X is Microsoft's powerful new game console

Later on in the interview, he clarified why he compared the Xbox One X to such an expensive gaming rig when the components in the console are cheaper.

Phil Spencer has revealed that Microsoft won't be making any money on the Xbox One X hardware. "This is a true 4K console".

"We're all about choice", he said, pointing to the Xbox One S as a more than capable console that is available at a relatively affordable price point, starting at $250 right now.

The Xbox One X is powered by a six-teraflop Polaris GPU which is 1.4 times better compared to its rival, Sony's PlayStation 4 Pro.


"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", the Xbox boss added.

It's impossible to say whether Microsoft will be making a loss on the Xbox One X, or merely breaking even, but we do know for sure that they'll be relying on selling lots of games to turn this into a profitable venture.

Ybarra replied back to a fan asking if the current Software Development Kit for the Xbox One X is complete or are they still working on it. It seems clear that Microsoft isn't anxious about that price gap between the two consoles since the company doesn't see them as direct competitors. "It's the same with Xbox One X. We've been meeting with developers, you heard EA on our stage saying they're going to optimize this because they want to show consumers the most unbelievable version of their games, and the Xbox One X is going to deliver that for them". Unsurprisingly, Microsoft isn't making money each of those consoles sold. 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 focus I had on this show was games you're going to get to play in the next year".

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