Microsoft, when they first started off in the world of video game consoles, sold the original Xbox as well as its sequel, the Xbox 360, for losses when they were first introduced to the world. Will the same pocket-damaging trend continue as in 2001 and 2005, with the release of the Xbox One this November 22nd? The answer would be a resounding “No!”, as Microsoft claims that they fully intend to make some money – even a little bit, with each Xbox One sold.
Yusuf Mehdi, the chief marketing and strategy officer of Microsoft’s Xbox business, did share over at the Citi Global Technology Conference in New York, touting that Microsoft is “looking to be break even or [achieve a] low margin [profit] at worst” for every single Xbox One that is moved off a store shelf. This does not mean that Microsoft would be passive with its pricing. Mehdi continued, “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.” Just how much do you think that the Xbox One’s fair price should be for the masses? After all, the console does seem to have a fair number of years ahead of it, if all goes well.