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#Business

Xbox One responsible for Microsoft’s $400m losses

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Microsoft’s latest Xbox One console has left the company with over $400 million in losses.

Announcing its 2014 annual earnings report, the Redmond revealed that it has suffered a loss of over $400 (£238) million on its current-gen console which was launched in November last year.

The company said it sold 11.7 million units of consoles in the fiscal year of 2014, as compared to just 9.8 million sold in the previous fiscal year. The sales in total generated total revenue of $1.7 billion.

The Redmond attributed the loss to the production and launching cost of the Xbox One which went to a whopping $2.1 billion.

Microsoft’s report noted that the Xbox Platform revenue increased $1.7 billion or 34 percent, mainly due to Xbox One sales, which was released in November 2013, offset in part by a decrease in sales of Xbox 360.

Xbox Platform cost of revenue increased $2.1 billion or 72 percent, mainly due to higher volumes of consoles sold and higher costs associated with Xbox One.

Microsoft’s leading rival Sony also launched its next generation Play Station 4 consoles in November last year. Back in May, research firm NPD claimed the Sony’s PS4 to have led the console sales in US, outselling Xbox One, since the launch.