Microsoft is selling the Xbox Series X|S at a loss of up to £173 ($200) per console.
- READ MORE: Best Xbox Series X|S games to play in 2022
That figure comes from Xbox head Phil Spencer himself, in an interview with CNBC. Spencer admitted that the Xbox consoles are currently being sold at a loss, with the hopes that they will make up that lost revenue through sales of games and accessories. Additionally, Microsoft also benefits from its subscription service Game Pass.
Microsoft currently loses £87 ($100) for every Series X sold, while the company loses £173 ($200) on the budget Xbox Series S.
This is typical for console manufacturers, which are typically sold at a loss – With the notable exception of the Nintendo Switch.
However, given Spencer’s recent comments, there’s some interesting context to consider here. Spencer has seemingly been laying the groundwork for a potential price increase for a little while now. Earlier this week, Spencer admitted that Microsoft may “have to raise the price on certain things,” although he maintained that prices will remain unchanged going into the holiday season. It is not clear if any potential price increase would be on the consoles themselves, the games, Game Pass or on some combination of the three.
