Xbox CEO Phil Spencer has admitted that Microsoft continues to lose ground with every Xbox Series X and Series S sold. That’s the opposite of what’s going on with Sony, which has stopped losing out on every PS5 sold.
According to what IGN disclosed, Spencer confirmed that there is a loss for each Xbox console that goes to the user and it ranges between $100 and $200 depending on the model. Those numbers suggest that the Xbox Series X costs about $699 to manufacture, while it sells to the consumer at $499, while the Xbox Series S costs about $399 to make and sells for $299.
New devices, with the exception of Nintendo consoles, used to suffer some losses that are compensated for by purchases of games and accessories. Microsoft hopes to continue to do the same with this current Xbox generation, but here it is more difficult as it encourages users to stop buying games at full price individually, and opt for the more enticing Game Pass subscription.
Spencer also suggested raising prices for Xbox consoles, Game Pass and Xbox games in the post-holiday season. In fact, this may reflect the real reason why Microsoft is keeping the losing price of its hardware, in order to offer better sales this holiday season. For its part, Sony has already increased the price of the PS5 everywhere except in the United States of America.