Microsoft plans to break even or make a profit with Xbox One at launch, according to chief marketing officer Yusuf Mehdi.
Speaking during the Citi Global Technology Conference this week, Mehdi teh firm’s strategy is to either “break even or low margin at worst and then make money selling additional games, the Xbox Live service and other capabilities on top.”
“You’ve seen us over the years constantly be focused on profitability and improving year over year,” Mehdi said. “Rhere 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.”
Xbox One will release on November 22 in 13 territories.
Thanks, GI International.