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E3 2017: Microsoft isn't making a profit on the Xbox One X

18 June 2017

It has eight custom x86 cores clocked at 2.3GHz, 6 teraflops of graphics performance and 12GB of GDDR5 RAM. These definitely aren't two of the most exciting original Xbox games when considering all of the great games that are on that console, but it's a start.

Phil Spencer has revealed that Microsoft won't be making any money on the Xbox One X hardware.

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The confusion also comes because earlier this week, The Wall Street Journal had reported that Xbox Marketing Chief Mike Nichols told them Xbox One X would not be able to work with VR headsets.

As for the reason for why there won't be as many original Xbox games as there are Xbox 360 games, Spencer claims that the process is more technically challenging and there are more rights hurdles that they need to overcome. "I would make more of a comparison to the PC space in terms of capabilities", says Dave McCarthy of the company. Although you can capture videos at 4K/60 fps on the Xbox One X. "The X will have even more trouble because the S is at $249 and so is the PS4". It is the most powerful console ever made, and Microsoft never backed away from saying it would have a premium price point, but still, some are feeling sticker shock given it's $100 more than PS4 Pro.

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Speaking to TechRadar, Ybarra the Xbox ecosystem is all about giving people options. As we know already, many 360 games are compatible with Xbox One, but this week they announced their expansion on that with the classic Xbox library. He was also asked about the UI for Xbox One X and whether it will be the same as the standard Xbox One. The game rights which have to be secured is a huge problem as a lot of studios may or may not be available right now.

"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".

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