Moin everyone
My buddy (Xbox enthusiast) often says that Microsoft will consciously make losses with the new Series X, which I don't believe him.
Is he speaking of truth?
Yes, partly not different with the PS5. Consoles are sold at a loss in order to attract players to the new platform
that is a very common practice
Many thanks for your response!
It's a pleasure
Yes he speaks the truth.
All console manufacturers do not make a profit on the device itself, especially at the beginning of a new console, but pay on it. Otherwise a new Series X or Playstation would cost around 1000 euro.
Over time, however, and the resulting sales, this becomes relative. The hardware, which was initially new and therefore also expensive, is built in millions of times and becomes cheaper over time.
In addition, games on consoles are often more expensive because the manufacturers charge the developers or publishers license fees. Online use also costs a monthly fee.
In these ways, the consoles become profitable over time and ultimately make a profit.
Thank you so much!
