Microsoft Reportedly Selling Xbox Series X / Series S at a Loss

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When the Xbox Series X and the Xbox Series S release later this year, Microsoft will apparently take a decent loss on both consoles, with the latter being more significant. The rumor comes from analysts Benji-Sales and Jeff Grubb on Twitter, and their exchange can be viewed below. Given the fact that Microsoft has always lost money on Xbox hardware, it isn't too surprising to hear that the company will be doing so this console generation. It's unlikely that Microsoft will give any concrete details on how much money they stand to lose per unit, but fans can speculate away, now that specs have been released for both consoles.


It should be noted that Microsoft is not the only gaming company that takes a loss on its gaming hardware. Sony and Nintendo both lose money on their consoles, though it should be noted that Nintendo sold at a profit much longer than other companies did. However, gaming companies have always made up the difference on console losses through the profits on software sales. If Microsoft truly is selling the Xbox Series X and the Xbox Series S at significant losses this generation, the company will have to make up for it with sales of games like Halo Infinite, Fable, The Gunk, and Gears Tactics.

Now that Microsoft has revealed the $499 price for the Xbox Series X and the $299 price for the Xbox Series S, it will be interesting to see how much the PlayStation 5 will retail for. Over the years, PlayStation hardware has consistently sold better than Xbox hardware, but Microsoft's two options could prove to be a threat this generation if Sony's console doesn't come in at a competitive price. At this time, there's no telling when Sony might reveal a price and launch date for the PS5, but it will likely happen in the coming days. For now, gamers will just have to speculate about what the future might hold for Sony and Microsoft.



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Related Forum: Xbox Forum

Source: https://comicbook.com/gaming/news/microsoft-selling-xbox-series-x-series-s-at-loss/

Comments

"Microsoft Reportedly Selling Xbox Series X / Series S at a Loss" :: Login/Create an Account :: 8 comments

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MazePosted:

DragonBall-Z Companies do this when they have something to recoup the loss. Like printers, for instance, companies sell them usually at a loss but know you will be buying ink eventually. It makes sense cause just like Apple, Microsoft gets a cut of DLCs, microtransactions, and via XBOX Live. I'm sure they know what they are doing.


This is exactly what I came here to post, they will for sure make the money back and continue to push the game pass which is helping them out tremendously!

DragonBall-ZPosted:

Companies do this when they have something to recoup the loss. Like printers, for instance, companies sell them usually at a loss but know you will be buying ink eventually. It makes sense cause just like Apple, Microsoft gets a cut of DLCs, microtransactions, and via XBOX Live. I'm sure they know what they are doing.

JosePosted:

Im sure once consoles are out they will do just fine with sales theres alot of people waiting in this console

NAPPosted:

This is all over the place... but I have a feeling that profit margins will not be a problem.

NicknKicknPosted:

Hasn't this been the case... with like every generation? Of course they lose money on console sales; they always have! They make it up on games/microtransactions/add-ons. Xbox live is an example.

OGTrey079Posted:

Not really surprised ain't the ps4 go thru same?

AnimePosted:

That was a pretty interesting read. But Im sure profit wise theyll do fine.

0101010101010101Posted:

This is actually a crazy read