At E3 2017 Microsoft finally unveiled Xbox One X to the delight of many. It also announced the price of the most powerful console in existence by pricing it at $499. While this was seen by many to be a fair price for a beast of a machine , many such as Michael Pachter deemed it to be too high.
However in a recent interview with Business Insider Phil Spencer made some comments which seemed to suggest that Xbox One X might not be making a profit at each unit sold. When asked if Microsoft makes any money selling the new console , he surprisingly went on to say “no”. When he was probed a bit further if they were actually making a loss on Xbox One X he went on to say , “I didn’t answer it that way”.
He then further went on to clarify that consoles are not the money making part of the gaming industry , its the added services such as Xbox Live Gold and Game Pass and most importantly exclusive games. Here is what he had to say about the matter.
“I don’t want to get into all the numbers, but in aggregate you should think about the hardware part of the console business is not the money-making part of the business. The money-making part is in selling games.”
In all honesty I can understand the price , it is a premium console after all , but at the same time if the idea is to make money from added peripherals then Microsoft has surely got to address the Elephant in the room of having next to no exclusives which can take advantage of the Xbox One X’s raw power.
Even at E3 the games that most of us got excited for are all 3rd party, and you cant help but wonder if the Xbox One X will still be playing second fiddle to PS4 Pro come the holidays . While Sony’s E3 press conference was far from spectacular they did manage to put together a decent line up of exclusives , whilst Microsoft only had Sea Of Thieves, Crackdown 3 and a number of Indie titles which frankly would be a waste of Xbox One X’s capabilities.
If the whole idea in Phil Spencer’s own words is to make a profit by selling games than you need to have exclusives, you cannot solely rely on third party games , and that is exactly the dominion where Microsoft are currently at its weakest.