Microsoft is selling Xbox Series consoles at a loss of $100 to $200 per console, Xbox head Phil Spencer said in an interview with CNBC. Microsoft expects to make a profit from the sale of games and accessories.
Microsoft is subsidizing the cost by $100 to $200 per console, with the expectation that it will recoup the money by selling accessories, games and services. says Spencer in the interview with CNBC. It is not uncommon for consoles to be sold at a loss by their manufacturers and for game sales to be profitable. Last week, however, Spencer said in an interview with the Wall Street Journal that a price hike for various Xbox products or services is “inevitable.”
The Xbox head also tells CNBC that Microsoft will probably not be able to keep the prices for games the same. Spencer does claim that games “provide an impressive amount of entertainment compared to other pursuits.” “People can play games for hundreds of hours.”
Should Microsoft raise the prices of games, it will follow its competitor Sony. The Japanese company announced in August that it would raise the suggested retail prices of its PlayStation 5 console. Sony cited the increased costs due to inflation as a reason to raise the suggested retail prices of its consoles.