Microsoft named Xbox’s main competitor in court and said it never made money from selling consoles

In the United States, litigation continues between Epic Games and Apple, in which the court interrogates representatives of various gaming companies. Vice President for Business Development was heard in the hall today Xbox Laurie Wright, which explained what the Xbox is and who the brand competes with.

According to Laurie Wright, Microsoft considers consoles of the family Playstation… Xbox is currently competing with Nintendo Switchbut “to a lesser extent”. The corporation places mobile gaming in a completely separate category.

“We do not see the iPhone as a competitor to the Xbox,” she said.

Answering questions from lawyers, Wright also officially admitted that Microsoft never made money from selling Xbox consoles – hardware is created and sold in the red all these years.

However, games and services allow the brand to stay afloat – in addition to implementing its own projects, Microsoft distributes someone else’s software on the Xbox and keeps 30% from each transaction.

“If we hadn’t kept 30% of our third-party revenue, we wouldn’t have been able to make money on the Xbox,” Wright said.

Talking about the difference between Xbox and Windows PCs (where Microsoft will soon cut commissions for game publishers in its store from 30% to 12%), Wright explained that Windows is an open platform with many use cases, while Xbox is highly specialized products built primarily for games.

Microsoft sells consoles at a loss to build a user base and capitalize on it by selling games and services. There are no plans to cut developer fees on Xbox, Wright said.

Epic Games CEO Tim Sweeney thinks giving Sony, Nintendo and Microsoft 30% of game and microtransaction revenue each is fair, but Apple isn’t… In court, he seeks to reduce the commission for developers in the AppStore.

Read also: Fortnite earned a paltry percentage of revenue on Android smartphones, and Switch brought in more money than iOS