Microsoft‘s VP of Xbox business development, Lori Wright, said in a sworn testimony on Wednesday that the tech giant knowingly sells Xbox consoles at a loss. A reporter for Th Verge, Adi Robertson live-tweeted from the Apple v. Epic Games trial, a lawsuit brought about by Epic Games challenging Apple over its hold on in-app game purchases. According to Robertson, Wright was asked whether Microsoft makes a profit from selling Xbox consoles.
“No,” she responded.
The lawyer also asked Wright why Microsoft continues to sell Xbox consoles at a loss, to which she explained that the company’s business model is optimized for an “end to end consumer experience” that makes money from other sales and subscriptions.
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So even with losses from Xbox consoles, Microsoft was still able to have a profitable financial quarter. Last month, the company revealed its results for the quarter that ended on March 31, with a gross revenue of $41.7 billion.
