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Why Is the XBox One Concentrating on TV?

May 28, 2013 10:07:00.130

As much as I might wish it to be otherwise, it's a pretty sensible business reaction to reality:

So as a general matter, Sony’s PlayStation business is not making money. And yet they’re doing everything hardcore gamers want.

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Well, although Cousins points out that the division of the company that contains Xbox has, over its lifetime, lost a bunch of money, we can see a clear upward trend in recent years. And again, to bring this up to date, the Entertainment and Devices Division had an operating income of $342 million in the last quarter.

The reality seems to be simple - having a $500 (or less) gaming device that consumes $60 games just isn't a profitable business to be in. It's might be part of the model for a profitable business, and that's what Microsoft is after. Serious gamers should just put together a PC with a good graphics card and hook that up to the TV...

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posted by James Robertson

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