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Microsoft's Yusuf Mehdi  (Source:
The Xbox 360 will also get another three years of support

A Microsoft executive said that each sale of the upcoming Xbox One console will break-even or be sold at profit from its launch date.

According to Microsoft's Yusuf Mehdi, the company plans to make money on selling games for the console and the Xbox Live subscription (which, he noted, has grown to 48 million members now). 

"The strategy will continue which is that we're looking to be break even or low margin at worst on [Xbox One]," said Mehdi. "And then make money selling additional games, the Xbox Live service and other capabilities on top. 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."

Mehdi, who spoke at the Citi Global Technology Conference this week, also said that Microsoft plans to support the Xbox 360 for another three years. The company plans to release over another 100 games for the console. 

"You've seen us over the years constantly be focused on profitability and improving year over year," said Mehdi. "There are different points in the cycle when you invest in new hardware. If you look at 360, that platform lasted for seven to eight years and it's going to go for another three years. It's incredibly profitable now in the tail. 

"Some of these things take some time in the launch year in which you invest, and then they they play out over time. We're going to continue to invest in Xbox 360, and the two devices can work in concert. So it's not like the day we ship Xbox One your 360 won't work. We'll continue to support it."

Microsoft recently announced that the Xbox One will officially launch November 22 in 13 markets, including Australia, Austria, Brazil, Canada, France, Germany, Ireland, Italy, Mexico, New Zealand, Spain, UK, and USA. It will make its way to other markets in 2014.

Source: Games Industry International

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By Flunk on 9/6/2013 11:20:36 AM , Rating: 2
They outsourced a lot of PS3 production to Pegatron and Foxconn so I can't see it being different this time around.

By Flunk on 9/6/2013 11:21:51 AM , Rating: 2
That's not necessarily bad news, Pegatron and Foxconn generally make things fairly well. Although Foxconn does have a history of human rights abuses (and there are some reports of Pegatron doing some of the same things).

By BRB29 on 9/6/2013 12:05:15 PM , Rating: 2
they both do. It's China where every chinese will admit that money is more important than people. We just see things differently but human rights are few and far in most places of the world.

By Flunk on 9/6/2013 3:37:29 PM , Rating: 4
I think it's a factor of how much you have. If you have all you want to eat, a safe place to live and free leisure time things like personal rights and freedoms seem more important that when you spend all day trying to make enough money to feed, house and clothe your family.

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