Microsoft confirms it doesn't make money off Xbox console sales — it's all about the software

More interesting Microsoft news has arrived thank you to the Epic Games 5. Apple trial. Equally part of a line of questioning revolving around the differences between app stores on consoles versus mobile despite the fact that both take 30% revenue cuts (a contentious figure which is at the center of the entire Epic five. Apple trial), Microsoft's revenue model for Xboxes was brought up.

Lori Wright, Microsoft'southward head of Xbox business development, was asked how much margin Microsoft makes via Xbox panel sales. Her reply was straightforward: "We don't," she said. "We sell the consoles at a loss."

It was left unclear whether Microsoft ever profits off console sales, equally later on in the lifecycle of hardware, and then-outdated components typically become cheaper to produce. But even when a console becomes cheaper to produce, at that point in a device's lifecycle, it'due south also typically sold for less, so peradventure Microsoft means that under no circumstances does information technology ever truly make a noteworthy profit off its consoles.

It's a well-established fact that console makers sell their machines at a loss, even in the instance of the PS3 back when information technology was $600 at launch. Yet, hearing Microsoft reaffirm this fact at the showtime of the Xbox Series X's lifecycle tells us that not much has inverse from a business model standpoint.

The end goal of panel makers remains to sell software and, in Microsoft's case, Game Pass subscriptions. Afterward all, why go through all the effort to sell a consumer on a unmarried piece of software that'southward a i-time purchase when you can sell them on all software at in one case via a single subscription that brings in dependable recurring revenue?

Post-launch roadmap for Final Fantasy XIV: Endwalker revealed

Future plans for FFXIV

Mail-launch roadmap for Concluding Fantasy XIV: Endwalker revealed

The latest Letter from the Producer livestream has just aired, and it comes with a plethora of news for Final Fantasy XIV. This includes plans for updating all the main scenario quest dungeons, improving the graphics, implementing new sidequests, and much more than.

Have a friend? Check out these two-player co-op games for Xbox.

DYNAMIC DUO

Have a friend? Cheque out these two-actor co-op games for Xbox.

Have friends? Want to play games with them? Thankfully, you can with Xbox! The Xbox platform is a brilliant and cheerful place for those who take friends (equally long every bit y'all avoid random comms on Telephone call of Duty). In whatever case, these are our picks for best 2 thespian games for Xbox One, Xbox Serial X, and Series Southward.