Tuesday, 21 November, 2017

Xbox One X won't turn a profit for Microsoft

Christian Petersen  Getty Christian Petersen Getty
Lori Graves | 26 June, 2017, 01:54

The price tag of $499 is actually right on the money for many analysts, as the price is what many predicted for the Xbox One X. The question, however, is whether gamers will be willing to pay that price, especially considering the lack of exclusives for the Xbox One compared to the PlayStation 4.

It's nothing new for the console business, to be certain. But let's have a look at the differences between the two.

The Xbox One X has a graphics processing unit (GPU) that is about 40 percent faster compared to the PlayStation 4 Pro, Spencer claims.

Xbox head honcho Phil Spencer has been talking far and wide about Xbox One X this week, this following the console's grand unveiling on Sunday night during Microsoft's press conference.

As for the PS4 Pro, it comes with an AMD Polaris graphics with 4.2 teraflops of performance and 8GB of GDDR5 RAM. On paper, it's clear that the PS4 Pro is competing with the Xbox One S, rather than the Xbox One X. It seems clear that Microsoft isn't anxious about that price gap between the two consoles since the company doesn't see them as direct competitors. When asked if each unit sold would result in lost profit for Microsoft, Spencer stated "I didn't answer it that way".

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During said event, we were told the price of the console at launch, with it set to cost £449 / $499 / 499 euros when it launches on November 7. The project will be named from now on Xbox One X and it will cost $499, being the premium option available in the Xbox series.

Spencer, however, refused to admit that Microsoft is selling each Xbox One X at a loss, clouding the profit margin that the company expects from what is described as "the world's most powerful console".

Will you be picking one up later this year?

"I could stand up and show some videos of things I think might come in the next three years". "People want to know what the roadmap in the future looks like, and that's my job to deliver it to them".

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