While that's part of the plan, prices may increase in 2023.
Microsoft Head of Gaming Phil Spencer has confirmed that the company loses up to $200 USD for every console it sells.
Speaking with CNBC, Spencer said that Microsoft loses $100 USD on the $499 USD Xbox Series X, and a whopping $200 USD on the $299 USD Xbox Series S.
Consoles are full of expensive hardware so it’s not uncommon for manufacturers to eat the loss on entry and make it up in software and accessory sales.
Following Sony’s controversial decision to raise the price of its PS5 consoles in certain markets due to inflation, Spencer said back in October that a price increase is likely coming after the holiday season.
Interestingly, Spencer’s candour on the issue comes following statements that Xbox Game Pass has started to turn a profit. Subscriptions now account for close to 15% of Microsoft’s gaming revenue, despite console based sign-ups slowing down.
“At some point you’ve reached everybody on console that wants to subscribe,” Spencer said.
The real money maker has been PC Game Pass, which Spencer said has been “seeing incredible growth”.
“I don’t think it gets bigger than that,” he explained. “I think the overall revenue grows so 15 percent of a bigger number, but we don’t have this future where I think 50–70 percent of our revenue comes from subscriptions.”
There’s no word on when Microsoft plans to raise their prices or for what services and accessories but Stevivor will definitely update you when there is.
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