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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 Reclaimer77 on 9/6/2013 3:19:57 PM , Rating: 1
No see his logic is that Microsoft didn't know what they were doing. They were just trying their hardest to make people happy! Only when they got the feedback, did they say, "ooops, you're right, that's a bad idea! Sorry we'll change it ASAP!"

It had nothing to do with Sony, nope. Nothing at all. It was all due to Microsoft's excellent listening skills and customer respect.


By inighthawki on 9/6/2013 4:46:46 PM , Rating: 3
That's not what's being said at all. Everyone knows, including hardcore MS fanboys, that Microsoft fully intended to do what they set out to do. The difference of opinion here is that I believe it was peoples' feedback that drove them to turn around polices. And yes, Sony's policies definitely swayed their opinion, but that's exactly the point.

Microsoft is a business, and like every business, they care about maximizing profit. They see that people are enraged about their policies, but then love Sony's policies. Sony puts hard pressure on Microsoft, and so the decision is made that they were wrong, and in response to customer feedback stating that the policies suck and that they are going to buy PS4s instead, Microsoft changed their policies. Changing policies in response to the positive feedback about Sony's policies surrounding the PS4 is the very definition of listening to the customer feedback. Competition at its best.


By 91TTZ on 9/9/2013 9:51:41 AM , Rating: 2
The problem is that trying a shady move and then backing off when you get caught doesn't work. You end up losing support from your customers. They no longer trust you and will shy away from buying their products.


"Well, there may be a reason why they call them 'Mac' trucks! Windows machines will not be trucks." -- Microsoft CEO Steve Ballmer














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