Microsoft brought a fairly swift end to the original Xbox console shortly after the Xbox 360 launched back in 2005. With the dawn of the Xbox One almost upon us, the platform holder has hinted that they are anticipating a much longer next-gen transition this time around.
Speaking at the recent Citi Global Technology Conference, Xbox chief marketing and strategy officer Yusuf Mehdi mentioned that Microsoft is planning to support the Xbox 360 for at least “another three years.”
“If you look at 360 that platform lasted for seven to eight years and it’s going to go for another three years. It’s incredibly profitable now in the tail.”
“Some of these things take some time in the launch year in which you invest, and then they they play out over time. 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.”
Mehdi also commented on the company’s financial strategy for the upcoming Xbox One, revealing that the next-gen console will sell at a “break even or low margin at worst” when it launches on November 22nd (which is coincidentally the eighth anniversary of the Xbox 360’s North American release). If the new console does end up generating red ink, Mehdi stated that Microsoft will make up the difference by “selling additional games, the Xbox Live service and other capabilities.”
The Xbox 360 was a costly endeavor for Microsoft when it launched back in 2005, so it is good news that the company is planning for an initial break even situation with the Xbox One. This is especially true when you consider that at least one new board member is undoubtedly going to be keeping a close eye on the Xbox division.
Source: Games Industry