Microsoft sold the original Xbox and Xbox 360 for losses when they were released in 2001 and 2005, respectively, but the company says that won't be the case with its upcoming Xbox One game console.
Yusuf Mehdi, the chief marketing and strategy officer of Microsoft's Xbox business, revealed the financial fact at the Citi Global Technology Conference in New York on Wednesday, saying Microsoft is "looking to be break even or [achieve a] low margin [profit] at worst" for each console sold. Mehdi went on to note Microsoft plans to be aggressive with its pricing, however.
"And as we can cost-reduce our box as we've done with 360, we'll do that to continue to price reduce and get even more competitive with our offering," he said, according to a GameIndustry International article.
Microsoft's Xbox One will cost $499 when it launches Nov. 22, with the console now in full production. Microsoft recently revealed it will include a bundled headset with each console, something it originally didn't plan to provide despite each Xbox 360 being sold with a headset. Each Xbox One sold will include the console, next-generation Kinect sensor and a single controller and headset.
At the same event, Mehdi noted that the company's current console, the Xbox 360, is now "incredibly profitable" and that Microsoft plans to support it for at least another three years.