Microsoft has confirmed that it has never made a profit from the sale of its Xbox hardware.
That's what Xbox CEO Lori Wright said when she was called as a witness in the ongoing lawsuit between Apple and Epic Games,
Wright was asked how much Microsoft earns from Xbox console sales.
"We don't," she replied.
"We are selling the consoles at a loss."
To the follow-up question of whether Microsoft ever made anything from the sale of an Xbox, the answer was simply, "No."
Microsoft has not previously confirmed this out loud, although it is well known that game consoles are usually sold at a loss.
The money is actually earned from the sale of games.
In the case of Xbox, the money also comes in through Game Pass, the subscription model where people pay a monthly fee in exchange for unlimited access to a game library.
Niko Partners analyst Daniel Ahmad writes on the basis of documents submitted by Microsoft that it is slightly different with Sony and Nintendo.
Sony is estimated to have sold a console for the first time with the PlayStation 4 for the first time, because the price of the game console remained the same for years.
Nintendo has released a game console with its Switch with relatively cheap hardware, which has been explicitly marketed to make a lot of profit.
Lawsuit revolves around commission on app sales
Wright was asked as a witness to determine whether the video game console market is different from the mobile market.
In the lawsuit, Epic argues that Apple's 30 percent commission on app sales is too high. The company calls it "anti-competitive" and monopolistic. Apple says its rates are in line with those of other platforms, such as Steam, Google Play, and Xbox and PlayStation stores, and it's necessary to ensure users' privacy and security.