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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.


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...


posted by James Robertson

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