Xbox Series X and Xbox Series S being sold at loss claims source

Xbox Series X and Xbox Series S being sold at loss claims source

If the prices of the next gen Xbox consoles sound almost too good to be true that may be because Microsoft is making a loss with each one.

The reveal of the prices for the Xbox Series X and Xbox Series S came as a great relief to most people, as they were both cheaper than many had feared – which immediately begged the question of whether Microsoft was selling them at a loss.

It’s usual for both Sony and Microsoft (and even occasionally Nintendo) to make a loss on consoles at launch, as it’s software, licensing, and services where the real money is made.

As such, many immediately assumed the new Xbox consoles weren’t being sold at a profit, but while answering questions on Twitter, VentureBeat journalist Jeff Grub claimed that both consoles are indeed being sold at a loss, especially the Xbox Series S.

That’s no surprise, as £249.99 is an astonishingly low price for a next gen console, with the only major compromises being that it can’t output at 4K and it has a relatively small SSD.

The £449.99 for the Xbox Series is the most expensive an Xbox console has ever been at launch (the Xbox One was £429.99) but given the inclusion of an SSD and other next gen components rumours had been circulating that it would have a much larger price tag.

It’s also rumoured that Microsoft is currently making a loss on Game Pass, with marketing boss Aaron Greenberg admitting it’s, ‘Not a big profit play’.

The PlayStation 5, with its faster proprietary SSD, is thought to be even more expensive to manufacture, which presents a problem for Sony given they’re a much smaller company than Microsoft and cannot so easily afford to take a loss on hardware.

Discussing the issue on Twitter, Grubb suggested that, ‘even at $500, the PS5 Digital Edition would be taking a loss’.

The Digital Edition is the less expensive model of PlayStation 5, without a disc drive, implying that the standard model would be even more costly.

Grubb has proven a reliable source of information during the E3-less summer but there’s no guarantee he’s right in this instance.

However, it’s also unlikely we’ll ever get the truth out of either console manufacturer, or at least not until we’re a few years into the generation and a clear market leader has emerged.

Email [email protected], leave a comment below, and follow us on Twitter.

Follow Metro Gaming on Twitter and email us at [email protected]

For more stories like this, check our Gaming page.

Source: Read Full Article