The internet let out a collective groan when Phil Spencer announced that the Xbox One X would cost $499 when it releases on November 7th this year. It may be the world’s most powerful console, but that doesn’t mean $500 isn’t going to hurt.
Still, things could have been worse. According to Phil Spencer, the Xbox One X is being sold at a price that means Microsoft won’t be making much, if any, profit on the console. It stands to reason, then, that Microsoft could have jacked up the price a little to ensure it made a few bucks off of each console sold, but it didn’t, and for that we’re grateful.
You’re probably wondering why Microsoft is opting to not make a big profit on the console. The reason is simple, really: most consoles are sold at almost no profit. The idea is to make the console as affordable as possible so that players can enter the ecosystem for that console and spend more money on games, services, and subscriptions. So the real profit comes from your spending habits once you’ve got the console; the console itself is just a doorway to bigger margins.