The Xbox One X could have been a lot more expensive

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If you’re chafed about the Xbox One X’s $499 price point, at least you can take solace in the fact that Microsoft isn’t gouging you for profit.

That’s because, as with most console hardware sales, Microsoft isn’t actually making money off the “world’s most powerful console.”

In an interview with Business Insider, Head of Xbox Phil Spencer said that Microsoft does not make any money selling the Xbox One X at its current price point, but he would not confirm that the company is taking a loss, either.

That means that Microsoft might be breaking even on the actual hardware sales, which is an interesting way for Xbox to hedge its bets with its latest console while raking in the cash with its software sales and subscriptions services (like Xbox Live Gold).

There are two major reasons why the Xbox One costs as much as it does: the tech inside that makes it a true 4K gaming machine, and the fact that the package the tech lives inside is so compact.

On top of that, while it is $100 more than the PS4 Pro, the Xbox One X boasts a healthy amount more power than Sony’s equivalent offering.

Of course, the Xbox One X’s price-point doesn’t bring into consideration how much a brand-new 4K TV will cost in order for you to get the most out of the console when it launches on November 7th.

Posted:
Related Forum: Xbox Forum

Source: http://www.egmnow.com/articles/news/the-xbox-one-x-could-have-been-a-lot-more-expensive/

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"The Xbox One X could have been a lot more expensive" :: Login/Create an Account :: 27 comments

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TOXICPosted:

Well i thought it was going to be at least £800 i would have been willing to pay that but nothing over £800 i wouldn't have paid, so im very happy with the price tag.

SkatesPosted:

Honestly $500 isn't even a lot of money. If you saved $10 everyday starting now until the release you'd have more than enough to purchase it.

MuahaModsPosted:

kerrry Yeah I was expecting them to have a much higher price like around $800-$1000 just due to how they are getting 4k gaming out of it.


Mhm because they'd sell a console for $1k who would buy that :') Aint nobody affording that for a games console.

k3rryPosted:

Yeah I was expecting them to have a much higher price like around $800-$1000 just due to how they are getting 4k gaming out of it.

M9zPosted:

Halo 4K TVs arent even as expensive as they were before, I bought one for $360. Glad the price of the console is only $600


Yea 4k is nice and all, but honestly, I just want the Xbox for the performance and power, and hopefully the more compact design will allow for more advanced heat management, so you can do high and AAA titles for hours on end stressing your system to the max without a single worry lol

KingTacoPosted:

the price isnt that expensive

AchePosted:

Seems like a decent price to me..

M9zPosted:

Maze My bet is that the xbox one becomes obsolete in terms of running games efficiently, and people are forced to get a new one.
Boom, profit

Cmon, Microsoft not making money?


It's true, go look up the individual prices of all the parts, plus the man hours to build a case and custom fit all the parts, and see how much it costs them to actually build an Xbox One.

If you think about something else like let's take Beats Headphones for example, they really gouge their customers, they cost 16 bucks to make each pair, but sell for hundreds in some cases, but this, costs more to build than they're selling it for, even buying wholesale.

Their money comes mostly from lie subscriptions, and deals they have going on with gaming partners like EA and such, they'll sell you the Xbox, but to get it to work effectively, it needs a subscription, so people who buy this for 500, over the course of time that they have it, they more than earn their money back through subscriptions, plus profit, but for the actual console sales themselves, there's no real profit to be had.

MazePosted:

My bet is that the xbox one becomes obsolete in terms of running games efficiently, and people are forced to get a new one.
Boom, profit

Cmon, Microsoft not making money?

ZydrinPosted:

I think the price for this console is super fair.


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