Microsoft has never made any money from the Xbox

It's kind of an open secret that, on average, console sales aren't very profitable. This has now been confirmed in the ongoing legal battle between Epic and Apple when Xbox Vice President Lori Wright was called as a witness.

Recommended Editorial Content Here you will find external content from [PLATFORM]. To protect your personal data, external integrations are only displayed if you confirm this by clicking on "Load all external content": Load all external content I consent to external content being displayed to me. This means that personal data is transmitted to third-party platforms. Read more about our privacy policy . External content More on this in our data protection declaration. When asked by Epic's attorney Wes Earnhardt how much revenue is generated from selling the Xbox consoles, Wright replied, "None, we make a loss on the consoles." Following up on this, Earnhardt asks: "To be clear, has Microsoft ever made a profit from the sale of an Xbox console?" Wright also said no to this question and stated that the consoles would not generate any profit because the business model was based on an "end-to-end experience" and the Xbox consoles were an important factor in delivering this gaming experience. These experiences would include things like Xbox Live Gold, Xbox Game Pass, and live service games.

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Microsoft: Xbox games could also appear on PS5 and Switch in the future

Microsoft would like to publish Xbox games for other platforms such as the PS5 and Nintendo Switch in the future. var lstExcludedArticleTicker = '1371604,1371589,1371416,1371556'; As Protocol describes it very aptly, this question was designed to show that makers of video game consoles are entitled to the 30 percent levy, but smartphone manufacturers such as Apple have no comparable argument. Apple's lawyers had accused Epic boss Tim Sweeney that his company had no problem paying the fee to console providers.

Recommended editorial content Here you can find external content from [PLATFORM]. To protect your personal data, external integrations are only displayed if you confirm this by clicking on "Load all external content": Load all external content I consent to external content being displayed to me. This means that personal data is transmitted to third-party platforms. Read more about our privacy policy . External content More on this in our data protection declaration. Interestingly, the console sale for Microsoft and Sony is currently a pure loss-making business, but Nintendo is generating profits from the sale of the Nintendo Switch. Incidentally, Microsoft recorded over a billion dollars in revenue through its services and software in 2019.

Further documents about Microsoft from the legal dispute between Epic and Apple show their internal test for The Last of Us Part 2 and their expectations to Nintendo in 2020.