In a recent sworn testimony from Lori Wright, Microsoft’s VP of Xbox business development, the executive revealed that Microsoft has never made a profit from sales of Xbox video game consoles. Alex discusses how Xbox sells consoles at a loss in order to build out their platform and strengthen network effects between gamers and developers. He looks at how this strategy applies to solving the platform chicken and egg problem.
This is an excerpt from episode 162 of Winner Take All. Watch the full episode here: youtu.be/5nMxic7OlQM
Originally Aired: 06/15/21
#Xbox #GameBusiness #NetworkEffects
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