Microsoft recently announced pricing for the Xbox Series S ($ 300) and Xbox Series X ($ 500). They’re lower than some thought, especially the lower spec S model. According to Tim Stuart, Xbox CFO, the consoles were deliberately low-priced and Microsoft is introducing the subscription to phones to make it easier to get people into the Xbox ecosystem and then spend money on games.
Stuart told Barron that the aggressive pricing of the S / X series of consoles will help Microsoft “kickstart” the new generation.
“Our goal was to grow that top of funnel asap, get people into the ecosystem, get people into this next-generation experience, and frankly, get that generation going ASAP,”
Microsoft could lose up to $ 100 on every Xbox Series X sold, but the company will offset those losses with game sales and subscription income like Xbox Game Pass. It is common for consoles to act as a loss guide, but this is more leeway than usual. Stuart spoke about it in an interview with Barron.
“I like to talk about how engagement equals currency,” he said. “When customers play, they buy more things from our partners, they buy more things from us, and their joy increases.”
For comparison, the Xbox One was $ 500, which was $ 100 more than the PS4. That price gap, along with various other stumbling blocks from Microsoft (such as a controversial plan to block used games that was abandoned before launch), put the company in a difficult position relative to the competition.
In this generation, Microsoft is starting from a stronger position with a lower price (taking inflation into account) and the smartphone-style Xbox All Access program that lets you get an Xbox Series S for $ 25 / month or an Xbox Series X for $ 35 Can get USD / month month.
Kotaku did some calculations and reported that the X Series ($ 500) is cheaper than introductory pricing for the Xbox 360 ($ 529) and Xbox One ($ 555), considering inflation. The original Xbox, released in 2001, cost $ 299 when it launched.
While Microsoft has announced the price and release dates for its next-generation consoles, Sony has yet to reveal the launch details for the PS5 and digital PS5. We also don’t know whether Sony will follow Microsoft’s path and also offer a subsidized program for the consoles.
Sony is hosting a PS5 showcase on September 16. So it can’t be long before we learn more about the console and its price / release date.