Microsoft's Xbox division barely makes a profit, according to a former executive

Feb 7, 2013 15:25 GMT  ·  By

The next-generation Xbox console, in the form of the oft-rumored Xbox 720, might use Windows 8 as a basis for its interface design and might even go so far as to implement touchscreen support, at least according to a former Microsoft vice-president.

The next Xbox console has been the target of quite a few reports lately, as plenty of website have quoted inside sources about the new device and its various features.

Now, IGN has talked with Microsoft's former Vice President of Windows Sales, Joachim Kempin, who believes that the new console's user interface will be even closer to that of the Windows 8 operating system and even support a touchscreen navigation.

"It’s going to be more Windows 8-like; maybe it even gets a touchscreen, who knows? Most of what’s in there today really is Windows, right? I wouldn’t be surprised if the next round of interface comes even closer to Windows 8 than it is today."

Kempin also revealed a rather surprising tidbit of information: Microsoft's Xbox division doesn't make a lot of profit in terms of console sales, as most of the money comes from developers and from several big games like Halo.

"On the [Xbox hardware] itself there is no profit. So the profit comes from all the other sources; royalties from game developers, maybe the next Halo version, maybe a new Kinect system and what have you."

"So when you look at that…God…it is such a small portion for their company. It would really be better if they would just spin that whole thing out and let other people run it on their own and not get distracted by it. For me that whole environment is a distraction for the company."

As of yet, Microsoft's hasn't commented on any Xbox 720 report, preferring to keep its cards close to its chest and just tease a supposed reveal at E3 2013 this summer.