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Xbox One: Microsoft Console Sales A Break Even With Possible Low Margin Profits

A high ranking official from Xbox claims that Microsoft’s popular gaming console will reach a break-even regarding sales. Xbox chief marketing officer Yusuf Mehdi made such announcement, saying that Xbox One has a possibility of getting a low-profit-margin.

Xbox chief marketing officer Yusuf Mehdi disclosed this during the City Global Technology Conference this month. He pointed out that Microsoft’s strategy for the gaming console will remain the same for 2018 until it would reach the break-even profit margin.

Microsoft to reduce the price of Xbox One?

“The strategy will continue which is that we’re looking to break even or low margin at worst and then make money selling additional games, the Xbox LIVE service and other capabilities on top,” Mehdi as quoted saying in a GameZone report.

Also, the Xbox chief market officer said that Microsoft could reduce the cost of the gaming console. This is the same strategy that the software giant used with 360. The company explained further that reducing the cost would also reduce the price and make a more competitive price offering.

But Microsoft’s decision may not sound like a smarter move for Xbox users. Microsoft set Xbox One’s price to $400.  Consumers claimed that the gaming console’s price  higher $100 compared to PS4.

Meanwhile, others have expressed high hopes that Microsoft would debut a Kinect-less SKU for a lower price. This hope surfaced because Xbox One no longer requires the Kinect. However, this remains to be seen if Microsoft is bent to pursuing such plan to appease its avid consumers.

Despite this development, the software giant is certainly not at the losing end when it comes to selling the Xbox One. But many asked how much the Xbox One would cost them in pre-orders. Given the tight competition of Xbox One over PS4, this is enough reason to sound alarmed because customers are looking for affordability to save money.

via TechNewsGadget

This post first appeared on TechNewsGadget - The Latest In Tech News, Gadgets And Gaming, please read the originial post: here

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Xbox One: Microsoft Console Sales A Break Even With Possible Low Margin Profits


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