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Microsoft Aiming to Break Even or Profit During Xbox One Launch Sales

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Posted on September 5, 2013 AT 01:03pm

Microsoft aims to break even or profit from Xbox One sales when the system launches this November, GamesIndustry reports.

Xbox chief marketing officer Yusuf Mehdi, while speaking at the Citi Global Technology Conference, said that the company is “looking to break even or low margin at worst” when the Xbox One launches toward the end of this year. The company was unable to either break even or profit from initial sales of the original Xbox and Xbox 360—something that’s fairly common with the initial sales of new hardware. The goal, typically, is to establish the install base first and foremost, then profit later.

“As we can cost-reduce our box as we’ve done with 360, we’ll continue to price reduce and get even more competitive with our offering,” Mehdi said. “You’ve seen us over the years constantly be focused on profitability and improving year over year. 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.”

Earlier this week, Microsoft announced that the Xbox One will launch in North America and Europe November 22.

Source: GamesIndustry

Chris Holzworth, News Editor
Chris Holzworth has wanted to write about games all his life. He first cut his teeth writing for enthusiast sites such as RPGFan, and after writing for just about every other enthusiast website he could came across, wound up as EGM's east coast news correspondent (read: editorial intern, a fancy phrase for "slave") before relocating to LA to serve as news editor. [Meet the rest of the crew]

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