Video game consoles have for many years been sold at a loss, and barring a few exceptions, that status quo of taking a hit on the hardware and making a profit on the software appears to be intact for the Xbox Series X. In the ongoing Epic Games vs Apple trial, Xbox business development vice president Lori Wright, a third-party witness, was questioned by Epic lawyer Wes Earnhardt as to how much money Microsoft earns from Xbox console sales.
"We don't. We sell the consoles at a loss," Wright answered (via Protocol). When asked if Microsoft had ever made a profit off of any Xbox device sale, Wright simply said "no."
Wright also mentioned that losses are offset by games, services, accessories, and subscriptions. While component prices do usually come down over time, so too do console prices in an effort to remain competitively priced in the market, and thereby the companies take a financial knock with each unit sold.
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