Microsoft loses $100 an Xbox, or more

Microsoft's strategy is to sell XBoxes at a loss, making up the money on subscriptions, accessories, licensing and the games–the classic console formula. It takes a $100-$200 hit on every one it sells.

Microsoft said during the Apple and Epic lawsuit that it had never earned a profit from console sales, instead relying on the Xbox Store and other means of earning the money back. The company regularly releases new variants of its official Xbox controller, such as the recent Lunar Shift, as well as the slightly more expensive Elite Series 2. The same interview uncovered also revealed that Microsoft could be increasing the prices of its consoles, games, and subscription services next year

Sony, in contrast, says it now breaks even on the PS5 after a loss-leading first year. The consoles are the same price and use similar hardware, but Microsoft opted for slightly more powerful (and presumably expensive) components.