Microsoft's Yusuf Mehdi has suggested that the company are looking to extend the Xbox 360's lifespan for another three years, pledging to support the current gen console far beyond the release of its successor, the Xbox One.
"You've seen us over the years constantly be focused on profitability and improving year over year," Mehdi stated, speaking at the Citi Global Technology Conference yesterday. "There are different points in the cycle of when you invest in new hardware.
"If you look at 360 that platform lasted for seven to eight years and it's going to go for another three years. It's incredibly profitable now in the tail. "Some of these things take some time in the launch year in which you invest, and then they they play out over time."
Mehdi also highlighted Xbox LIVE as a source of continuing revenue:
"We've seen our Xbox Live subscription service continue to grow. We're up to 48 million members now. We're shipping more games than we've ever done before. Those are things I look to to say, 'hey we can grow not just top line revenue but also profitability.'"
Mehdi, who served as the Xbox chief marketing and strategy officer, followed that by announcing that Microsoft will ship over 100 new games for Xbox 360. "We're going to continue to invest in Xbox 360, and the two devices can work in concert. So it's not like the day we ship Xbox One your 360 won't work. We'll continue to support it."
"The strategy will continue which is that we're looking to be break even or low margin at worst on [Xbox One], and then make money selling additional games, the Xbox Live service and other capabilities on top. And as we can cost reduce our box as we've done with 360, we'll do that to continue to price reduce and get even more competitive with our offering." [EG]