Microsoft Loses Up to $200 on Every Xbox Console Sold

Xbox boss Phil Spencer has admitted that Microsoft continues to suffer a substantial loss on every Xbox Series X and Series S sold. That’s in contrast to Sony, which no longer makes a loss on the PS5.

As IGN reports(Opens in a new window), Spencer confirmed that the loss on each Xbox console is between $100 and $200 dependent on the model. Such figures suggest the Xbox Series X costs in the region of $699 to manufacturer while it sells for just $499, and the Xbox Series X costs around $399 to make, but sells for $299.

New consoles, with the exception of some Nintendo hardware, are typically sold at a loss and the money made back through games and accessories purchases. Microsoft hopes to do the same with Xbox during this generation, but you can argue that’s a harder task because rather than purchasing multiple games at full price, Xbox owners are encouraged to subscribe to Game Pass instead.

Spencer also suggested last week that the price of Xbox consoles, Game Pass, and Xbox games may rise after the holiday period. In fact, his comments suggest Microsoft is keeping prices down now in order to boost holiday sales. Sony has already increased the price of the PS5 everywhere except the US.

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