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Microsoft: Company not making money on Xbox One X at $500

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May not be losing money, either

Image of Xbox One X console and controller
Xbox One X console and controller
Microsoft

Microsoft won’t be making money on the sale of its upcoming new console, the Xbox One X, head of Xbox Phil Spencer told Business Insider in a recent interview.

When asked if the console was losing money on each sale, Spencer didn’t further specify to the reporter.

He did have this to say, though, when it comes to the traditional route by which most game systems and their designers have made money:

"I don't want to get into all the numbers, but in aggregate you should think about the hardware part of the console business is not the money-making part of the business. The money-making part is in selling games."

At $499, the reaction to the Xbox X wasn’t exactly positive. Despite that, Microsoft said, following its price-revealed press conference, that it wasn’t just OK with the high cost of the new system, it was “proud” of it.

The console, according to Microsoft, will be the most powerful gaming console in the world when it is released in November.

The Xbox One X hits Nov. 7 for $499 and will include support for enhanced visuals such as 4K and HDR video. Microsoft said that 35 existing games will receive a free upgrade to take advantage of the new tech, with more to come.