The case of Epic Games against a Apple has become a great source of information about the gaming industry, as a lot of confidential information has been publicly revealed. In one of these papers, it was revealed that Microsoft loses money for each console sold.
So, Microsoft made it a point to clarify through The Verge that the Xbox division makes money, not by selling consoles, but in another way:
‘The gaming industry is profitable and is a growing business for Microsoft. Generally, the console business is a hardware grant model. Companies sell consoles, losing money to attract new customers. Profits are generated by selling games and subscriptions to online services’
Thus, Microsoft explains something that is common and expected in the gaming industry.
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