Xbox One Launch Cost Microsoft $400 Million

Microsoft has reportedly lost over $400 million on the Xbox One since its release last November.

The Independent reports that Microsoft’s latest annual earnings report states that the Xbox One launch cost the company approximately $2.1 billion, while its 11.7 million consoles sold between Xbox One and Xbox 360 last year accounted for $1.7 billion in revenue, leaving the company with a $400 million loss.

The report reads as follows:

“Xbox Platform revenue increased $1.7 billion or 34%, due mainly to sales of Xbox One, which was released in November 2013, offset in part by a decrease in sales of Xbox 360.”

“Xbox Platform cost of revenue increased $2.1 billion or 72%, due mainly to higher volumes of consoles sold and higher costs associated with Xbox One.”

Microsoft is currently planning to launch the Xbox One in China, but the smaller scale of the launch will likely not have such a heavy effect on the company financially.

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