As reported by The Independent on Saturday, August 9, its seems that bigwig company Microsoft are hemorrhaging money thanks to its current-gen console, the Xbox One, with a loss of $400 million since the new platform’s release in November, 2013.
Detailed in its annual earnings report for this year, Microsoft’s figures show that an increased expenditure in production and advertising brought on by the Xbox One are what’s causing the company to lose money.
However, on a more positive note, according to the report, the company has stated that it has sold a total of 11.7 million Xbox One consoles since the turn of the 2014 fiscal year (which was back in April). This number is 1.9 million more compared to the 9.8 million Xbox Ones sold late year. Thanks to the increase in sales of the console, Microsoft’s revenue has increased to $1.7 billion.
“ Xbox Platform revenue increased $1.7 billion or 34%, due mainly to sales of Xbox One, which was released in November 2013, offset in part by a decrease in sales of Xbox 360, ” Microsoft said in a statement viewed by The Independent.
“ Xbox Platform cost of revenue increased $2.1 billion or 72%, due mainly to higher volumes of consoles sold and higher costs associated with Xbox One. ”
So, while the Xbox One is making money for Microsoft, it also seems to be losing money for the company.
We’ve established that, even with the removal of the Kinect, the Xbox One in still lagging behind Sony’s PlayStation 4 in terms of sales.
For those who’ll be attending/keeping an eye on Microsoft and Xbox at this year’s forthcoming Gamescom, be sure to check out their schedule .
We’ll bring you more Xbox One news should further information reach our ears.
[ The Independent ]
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