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Xbox Consoles Never Turn a Profit - Vimarsana News

Xbox Consoles Never Turn a Profit

Xbox Consoles Never Turn a Profit ✖ During the court case between Apple and Epic Games, Xbox vice president Lori Wright was called to testify. In her testimony, Wright was asked by Epic Games lawyer Wes Earnhardt about the overall profitability model of Xbox. Wright revealed that no Xbox console has ever been sold at a profit for the company. While that might not seem like a good business model, Wright revealed that Xbox profits off the software and subscriptions it sells, instead. Wright's testimony was meant to establish that gaming companies need to charge publishers 30% to sell their ga...

Microsoft Says Xbox Consoles Have Always Been Sold at a Loss - Vimarsana News

Microsoft Says Xbox Consoles Have Always Been Sold at a Loss

(Photo by Louis-Philippe Poitras on Unsplash) It's a well-known fact that when a new game console launches, it's typically sold at a loss. But as hardware revisions and mass production ramp up, costs fall and the console should eventually become profitable. However, that's never happened for an Xbox console, according to Microsoft. As Protocol reports, Xbox business development VP Lori Wright is a third-party witness in the Epic vs. Apple trial. Epic's lawyer Wes Earnhardt asked Wright: "How much margin does Microsoft earn" when selling Xbox consoles, to which Wright responded, "We don't. We ...

Source: pcmag.com
Microsoft tells judge about its battles with Apple over iOS store restrictions - Vimarsana News

Microsoft tells judge about its battles with Apple over iOS store restrictions

May 6th, 2021 Brittany Hosea-Small / reuters Once again, the Epic Games v. Apple court fight is revealing inside information about the gaming industry. Microsoft testified at the trial yesterday as a witness for Epic, and explained how iOS rules essentially blocked its xCloud gaming service, as Ars Technica and others reported. It was also justified its own 30 percent commission on Xbox Store apps and explain why console store rules need to be different from those on PCs or smartphones.  Epic questioned Microsoft's business development head Lori Wright on its fight with Apple to get its xCl...

Day 3 of the Apple vs Epic trial: What actually is an iPhone anyway? - Vimarsana News

Day 3 of the Apple vs Epic trial: What actually is an iPhone anyway?

The Microsoft exec also pointed out that special-purpose devices often have a different business model. Whereas Apple earns a crust from the sales of devices, with App Store revenue ancillary, games consoles are effectively loss leaders, sold for less than the manufacturing cost in the hope the vendor will recoup the difference through software and content sales. The distinction, based on Wright's testimony, is that nobody would purchase the Xbox with plans to use it like an open-ended platform. By contrast, there's an entirely different expectation when it comes to iOS. That expectation isn'...

Epic Games admits its own developer agreements ban rule-breakers - General Discussion Discussions on AppleInsider Forums - Vimarsana News

Epic Games admits its own developer agreements ban rule-breakers - General Discussion Discussions on AppleInsider Forums

Epic Games doesn't tolerate rule-breakers on its platforms, Apple argued in the Epic v. Apple trial, drawing parallels to the actions that led to "Fortnite" being removed from the App Store. Credit: Epic Games Epic Games Technical Director Andrew Grant was on the stand Wednesday, explaining why a game like "Fortnite" couldn't be delivered as a web application. During his testimony, however, Apple's lawyers began a line of questioning to establish that, much like Apple, Epic has developer agreements within Unreal Engine and actively enforces rules on games like "Fortnite."...