Microsoft loses up to $200 on each Xbox Series S | X and hints at higher prices for gaming consoles

Phil Spencer, the head of Microsoft, once again emphasized the fact that the company sells the new generation of gaming consoles at a loss, but it can not continue forever.

Here's What We Know

Spencer said in an interview with CNBC that the Xbox Series S | X game consoles are selling well below cost. According to the head of Microsoft, the company loses $200 on each Series S console. The losses from Series X sales are half that - $100. The recommended price of the consoles is $299 and $499 respectively.

Phil Spencer again noted that Microsoft will not be able to consistently sell the Xbox Series S | X at a loss by keeping prices at current levels. This is yet another hint that the next-generation consoles will go up in price for the foreseeable future. By the way, over the summer, Spencer responded negatively to a question about possible price increases after Sony announced that the PlayStation 5 would become more expensive.

Note that selling consoles below cost is normal practice. Nintendo should be taken out of the bracket here. The companies make up for the losses through related sales, including subscriptions, accessories and a share of the profits of game developers.

Source: CNBC