Microsoft corporate VP of marketing and strategy for Microsoft's Interactive Entertainment Business Yusuf Mehdi has stated that the Xbox One will at the minimum break even launch, with the possibility at being sold for a profit.
"The strategy will continue which is that we're looking to be break even or low margin at worst on [Xbox One] and then make money selling additional games, the Xbox Live service and other capabilities on top," said Mehdi at the Citi Global Technology Conference attended by GamesIndustry International. "And as we can cost-reduce our box as we've done with 360, we'll do that to continue to price reduce and get even more competitive with our offering."
Mehdi added that the Xbox 360 has been on the market for nearly eight years and Microsoft plans to keep supporting it for another three years. The Xbox 360 is currently "incredibly profitable." There are more than 100 games planned to be released on the Xbox 360 in the next three years.
"Some of these things take some time in the launch year in which you invest, and then they they play out over time," added Mehdi. "We're going to continue to invest in Xbox 360, and the two devices can work in concert. So it's not like the day we ship Xbox One your 360 won't work. We'll continue to support it."