Xbox One Could Be Sold At A Profit From Launch Day
Microsoft has said that it hopes to make a small profit on each Xbox One machine sold this November at launch.
Yusuf Mehdi, the Xbox chief marketing and strategy officer, said the following during the recent Citi Global Technology Conference:
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“We’re looking to be breakeven or low margin at worst on hardware and then we make money selling additional games, the Xbox Live service and other capabilities on top.
“And as we can cost reduce our box as we’ve done with 360, we’ll do that to continue to price reduce and get even more competitive with our offering.”
Mehdi also said that the Xbox One is in full production after Microsoft decided to boost the system’s CPU from 1.6 GHz to 1.75 GHz.
“From a market demand perspective we’ve been sold out on pre-orders of Xbox for couple of weeks now,” Mehdi continued.
“We’ve built more than we’ve built for an Xbox launch. We are on track to have the biggest launch we’ve ever done by a wide margin for a console. I expect there will be multiple millions of people enjoying Xbox through the holiday.”