Michael Pachter recently commented on various things; PS4, PS5 and Xbox division. He was quite active recently with interviews and his own kind of YouTube show answering fans questions.
Gamingbolt asked Michael Pachter regarding the Xbox One X and what’s going to happen if for whatever reason Xbox One X was to flop not sell enough to their expectations. Would Microsoft consider pulling out from the console market?
According to Michael Pachter he don’t believe so and this is what he actually had to say:
‘No, I don’t think so,’ he said flatly. ‘[Xbox consoles] are wildly profitable. We are concerned about warring about who is first and who is second, but that’s like saying, Pepsi doesn’t sell as much cola as Coke does, why not just shut down? Or Burger King doesn’t sell as many hamburgers as McDonalds, so why not shut down? They’re both profitable, who cares? The only people who care are fanboys.’
He is actually right about this whole thing, people seem to think that Microsoft is actually being kicked by Sony in sales numbers because they are loosing in terms of number of consoles sold world wide, it’s 60 million to 30 million. But that doesn’t mean that they are not getting any profits over it just because their sales numbers are lower than PlayStation 4.
Console sales is one thing, they still need to sold consoles services later on and services are where they actually making money. From their perspective it doesn’t matter whether you buy an Xbox One S or Xbox One X in the future because at the end of the day you still have to pay for Xbox Live and game pass services. Also, you will buy at least couple of their games which translate to some profits as well so, overall they are actually making money on games, they are making money on provisions from publishing the games for Xbox and this is where the money comes from.