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Microsoft's Yusuf Mehdi  (Source: buscafs.com)
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 retrospooty on 9/6/2013 12:31:16 PM , Rating: 5
" Sony is the absolute king of screwing the customer over first, ask questions later. I haven't owned a Sony product in 7+ years, and won't again. "

I hear you there... Sony has been absolutely horrendous in the past... But lately, they havent done anything crappy and they are clearly trying to be better. MS on the other hand was always pretty cool and lately is totally dropping the ball on customer sat and giving a crap about what their customers want period.

So to that point, when buying a product today would you rather buy from a company that sucked in the past and is doing better now, or buy from a company that was better in the past and sucks now? Sorry, Sony gets my cash on this round. I am totally open to MS turning around in the future, I bet they will, but this round is Sony's and sales will prove it.


By inighthawki on 9/6/2013 12:57:40 PM , Rating: 4
quote:
So to that point, when buying a product today would you rather buy from a company that sucked in the past and is doing better now, or buy from a company that was better in the past and sucks now?

How about one that that clearly listened to their customers' feedback and implemented changes to make them happy?


By HoosierEngineer5 on 9/6/2013 2:13:50 PM , Rating: 2
Think Microsoft would have made the change without the competition from Sony? At this point, it's clear the customer would be screwed if EITHER company didn't exist...


By inighthawki on 9/6/2013 2:35:51 PM , Rating: 5
And that's exactly the point. People are giving Sony a free pass here and just slamming Microsoft hardcore. Yet, Sony has a history of screwing their customers and then not doing anything about it, and in one instance now they did OK, whereas Microsoft has a pretty good history of pumping out decent products that meet their customer needs, and when they mess up, they listen to the feedback and make changes accordingly, only be to unreasonably criticized for having had the thought to begin with.

Sure Sony didn't do anything wrong, but credit is deserved for listening and making adjustments to please their fans, and I think Microsoft really deserves a break on that one. At this point, to pick a console based on anything other than objective facts is simply fanboyism or bias. If you want the PS4 because the specs are better or you like the games better, go for it. But this blame on Microsoft for something that never even came to fruition is absolutely absurd.


By inighthawki on 9/6/2013 3:03:33 PM , Rating: 1
I actually have no plans on buying one, nor do I plan on buying a PS4. I'm just thinking about this as an unbiased third party, who clearly sees that Microsoft screwed up, and then fixed their mistake. And credit is due here for listening to the customers.


By retrospooty on 9/6/2013 3:06:39 PM , Rating: 4
"I'm just thinking about this as an unbiased third party, who clearly sees that Microsoft screwed up, and then fixed their mistake. And credit is due here for listening to the customers."


http://i.imgur.com/HWO7SKe.gif

Even if you give MS a pass and they dont put back what they backed down on, as a gaming system its still not as fast, more limited, no Netflix without gold and its slower + costs more. There really isnt any more to it.


By inighthawki on 9/6/2013 3:14:46 PM , Rating: 1
I don't care if you believe me or not, I call it as I see it, and as I see it, people are giving Microsoft a hard time for no reason.

I'm also not arguing which console is better. Look through my posts and you will see that. I only argue against people who make false claims that cannot be backed up, as we have no real world data to prove anything until both consoles are released and we have reviews.

Attempting to claim the intentions of any company without being in the meetings where such decisions were made is complete nonsense, and has no supporting evidence.

I am a hardcore PC gamer, and the only thing about the xbox one i'm truly interested in is the controller, which I will use to replace my current 360 controller to improve my experience in controller friendly games, especially emulators. Otherwise I couldn't care less about who makes what console and what games are available in what quality.


By retrospooty on 9/6/2013 3:23:25 PM , Rating: 4
"people are giving Microsoft a hard time for no reason"

That is absolutely not true. I have personally witnessed dozens of people here at this site (myself included) spelling those reasons out to you in great detail time and time again. If you disagree and those reasons don't matter to you, that is fine, but don't say those reasons don't exist. They obliviously matter to most of us here.

I personally think its a good thing to voice it. We all voiced the hell out of it with Vista and they got the message and fixed it all in Win7. If they don't hear that stuff all over the place by masses of people, they might never fix the horrendous jokes that are Win8 and the XBO


By cditty on 9/6/2013 3:56:18 PM , Rating: 2
How many really use the Xbox for Netflix? I use my TV for that. I have a Gold membership, though... It is economical and the multiplayer works great in all my games. I trust the MS network to stay up and work. I have more faith in them than I do Sony for that... So, I preordered Xbox One. I love multiplayer gaming and my faith in MS networking was a driving force in my decision. Followed closely by the voice commands in Kinect 2.


By retrospooty on 9/6/2013 4:09:44 PM , Rating: 2
it doesn't even matter, that isn't the point. The point is that Microsoft disables your ability to use your Xbox you paid for and your Netflix that you pay for unless you pay the $5 a month. Its just crappy and restrictive.


By Reclaimer77 on 9/6/2013 4:10:33 PM , Rating: 2
The Xbox is WAY faster than your TV's online suite, especially when outputting a 1080p 5.1 audio Netflix. Most smart TV's suck balls at streaming.


By inighthawki on 9/6/2013 5:05:47 PM , Rating: 2
And that's fine. Voice your opinion, they've already listened and fixed the issues people had with XBO. So how is it a joke? They literally listened and responded to every single issue (software related, it's obviously far too late to address hardware changes from feedback about the performance difference).

Windows 8 is honestly the only piece of software I know of that has received such massive criticism but hasn't really addressed feedback all that much.


By retrospooty on 9/6/2013 5:38:33 PM , Rating: 2
"So how is it a joke?"

Take all the items you have defended over the past few months for examples. It's not all in everyone else's collective imaginations.


By inighthawki on 9/6/2013 6:44:46 PM , Rating: 2
I guess we have very different opinions about what a joke is then. Because XBO was a joke when it was first announced, then they corrected the issues. So how is it a joke unless you're just purposely applying an unreachable expectation for the sole purpose of being able to find an excuse to call them bad?

I don't see any comments around about Sony and PSN being hacked. They made a mistake, then ignored the issue, then got hacked AGAIN. But the moment they release a console and targeted advertisements of being not what people didn't want XBO to be, they're suddenly saviors?


By 0ldman on 9/8/2013 11:46:14 PM , Rating: 2
Wow.

You are young.


By sguy on 9/7/2013 9:34:37 PM , Rating: 2
Did you know that Sony had plans to have their own DRM on the PS4? They ended up not implementing it because they saw the backlash that Microsoft was getting for theirs. To act like Sony just has us gamers in mind is ludicrous. They didn't implement the DRM because they knew they could make more money that way. It's really as simple as that: it comes down to them wanting to make money. which is not a bad thing, its just people praise Sony as if they cared about the gamer when it was a business move not an act of heroism.


By Reclaimer77 on 9/6/2013 2:43:39 PM , Rating: 3
quote:
How about one that that clearly listened to their customers' feedback and implemented changes to make them happy?


Except they didn't do that. Read my post below if you care about why those changes were really made.

They only made those changes because Sony made it literally impossible for Microsoft to get away with their original schemes. End of story.


By half_duplex on 9/6/2013 4:59:35 PM , Rating: 2
And don't think for a second that they've given up on their original plans, they've just put them on hold.


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