Was Xbox 360 sold at a loss?

In response to a question from Epic lawyer Wes Earnhardt asking "how much margin" Microsoft earns on the sale of Xbox consoles, Wright said: "We don't. We sell the consoles at a loss". Asked if Microsoft has ever earned a profit on the sale of an Xbox console, Wright replied: "no" (via Protocol).

Did the Xbox 360 sell well?

First released in November 2005 as a successor to the original Xbox, the Xbox 360 is a video game console produced by Microsoft. As of July 2022, it had sold 85.8 million units across the world, including over 47 million units in North America.

Did Xbox 360 make a profit?

During the full fiscal year, the company took in a profit of $1.32 billion, up from $618 million in 2010. The division also saw an overall revenue increase, again reflecting higher Xbox 360 platform revenue.

How much money did Microsoft lose on the Xbox 360?

The hope is that the loss will be made back from accessories, subscriptions, and game purchases. I've been working at PCMag since November 2016, covering all areas of technology and video game news.

Is the Xbox sold at a loss?

During the WSJ Tech Live event, Spencer revealed that each Xbox console that is sold nets a loss of up to $200 per console. Spencer went on to describe consoles as a business model. "Consoles evolved to a business model much different from phones where consoles are actually sold at a loss in the market," said Spencer.

I gained access to a 12 year old Xbox 360 account... This is what I found...(Xbox 360 Nostalgia)

Was the PS4 sold at a loss?

The PS4 was sold at a loss on day 1. Its total build cost was $381, but the additional costs involved such as retailer margin etc... pushed the total cost for Sony over $399. Took a few months for them to make a profit on that price.

Are consoles actually sold at a loss?

Of course, console manufacturers often sell consoles at a loss - with the usual exception of Nintendo. It's a widely accepted business practice to then recoup money elsewhere, such as from software sales (where platform holders take a cut) and subscriptions, such as Xbox Games Pass.

Why did the Xbox 360 fail?

The "Red Ring of Death" problem was a massive hardware issue that caused a huge number of Xbox 360 consoles to stop working. The system would flash a ring of three red lights around its power button on the front face (seen above) — thus the nickname.

Did Sony lose money on the PS3?

Sales of Sony's PlayStation 3 have resulted in losses of $3.3 billion dollars since the system's launch, reports Forbes. Key to the company's losses is the "strategic pricing" initiative it has adopted in an effort to catch up with Microsoft's Xbox 360, a console which hit shelves almost a year earlier.

Did the original Xbox lose money?

Microsoft lost $5 billion to $7 billion on the original Xbox, launched in 2001. And it made billions of dollars on the Xbox 360. Depending on the time frame in which you look at it, it was either an insane waste of money or the finest strategic decision that Microsoft ever made.

Has Xbox ever been profitable?

Xbox Made More Money In Past 3 Months Than It Ever Has For A Q1 In 20-Year History. Microsoft's Xbox division brought in more than $3.6 billion in the past three months. Microsoft has announced its latest earnings results, and this includes reporting on how the Xbox business specifically is performing.

How much money did Xbox 360 make?

Wondering how much money Microsoft has made on the Xbox 360? Curious how much they raked in from retail alone? Well, a new entry on the official Microsoft blog site indicates that the Xbox 360 brand has generated more than $56 billion in revenue from retail alone.

What is the most sold console ever?

Sony's PlayStation 2 has long reigned as the best-selling video game console of all time. PS4, despite its massive sales success, ended its run roughly 40 million units behind its older sibling.

What's the most sold console?

The total number of video game consoles sold worldwide across the products entire lifetime on the shelves are shown here as of September 2021. At this time the PlayStation 2 is the top games console having sold a total of around 157.68 million units worldwide.

Are Xbox 360 worth anything?

How Much Is The Xbox 360 Original Worth? The original Xbox 360 model can range from $50 - $150 depending on the console's condition, size of the hard drive and the number of accessories or games it comes with.

Did Sony sell the PS5 at a loss?

However, operating profit rose 12.1 percent to $810 million, because Sony actually loses money on each PS5 console sold.

Will PS3 ever shut down?

VERDICT. False. PlayStation will not be shutting down its servers or store for PS3. While they'd initially announced they would close their PS3 game store, the company later reversed the decision.

Is Sony going to stop supporting PS3?

“Due to the depletion of parts inventory, we will no longer be able to provide after-sales service for the PlayStation 3 CECH-4300 series main unit and all PlayStation 3 peripherals on April 30, 2022 (Saturday).

Is Xbox 360 no longer supported?

Note Xbox 360 support content is no longer being maintained. If you need more info about your Xbox 360 console, visit the Xbox forums.

How many Xbox 360s have failed?

In the early months after the console's launching, Microsoft stated that the Xbox 360's failure rate was within the consumer electronics industry's typical 3% to 5%.

What replaced the Xbox 360?

The Xbox 360's successor, the Xbox One, was released on November 22, 2013.

What is the least selling console?

Atari 5200

The console sold only a little over a million units.

Was PS2 sold at a loss?

The production pipeline also had issues, with the company underestimating demand and not wanting to commit too much as each PS2 was being sold at a loss, with the profit made up from software sales.

Why are most consoles sold at a loss?

It Is All Part of the Game Company's Plan

They intentionally lose profits on console sales in order to facilitate other, more profitable sales. We sometimes call this pricing strategy a “loss leader”. Companies lead with a profit-losing sale, because they know more profitable sales will follow.