Microsoft won't be making any money on the Xbox One X

One of the biggest talking points around the Xbox One X this week has been its $500 price. Even though the Xbox One X can pump out true 4K, high dynamic range visuals and Dolby Atmos audio for the growing number of TVs and sound systems that support these cool technologies, who is this sleek, expensive beast aimed at?

When Ben Gilbert asked Spencer whether Microsoft is making any money on each unit of the Xbox One X, to which he simply replied: "No".

Original Xbox backward compatibility with Xbox One was one of the major announcements that came from Phil Spencer at E3 2017.

In a recent interview with Business Insider, Spencer confirmed with a simple "no" that the company will not be making a profit off of initial hardware sales (the cost of components inevitably comes down and eventually they will, but for now at least, there's no profit).

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Spencer also elaborated by saying "I don't want to get into all the numbers, but in aggregate, you should think about the hardware part of the console business is not the money-making part of the business, the money-making part is in selling games". From what we can tell, it will offer more power than the PS4 Pro rival. "If you're a high-end gamer and you want the absolute best experience possible there's no place you'll find a better performance to price ratio than Xbox One X", he said.

The fact that Microsoft is not making a profit on the Xbox One X now, however, could not be considered surprising at all. Although you can capture videos at 4K/60 fps on the Xbox One X. The console also supports 4K games, which is now at the top edge of video game technology.

When it releases in November, the Xbox One X will be the most powerful console in the world, but clearly the custom-built eight-core CPU, 12GB of GDDR5 RAM, and six teraflops of GPU power costs some serious money.

The backwards compatibility program has been a huge success on Xbox One, allowing gamers to play hundreds of Xbox 360 games on the new console without having to dig out the old one.

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