Despite Over $1,000 Cost, Microsoft Will Sell Next-Gen Xbox ‘Magnus’ at a Loss to Compete With PlayStation

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Would You Be Interested In A $1000+ Xbox?

Story Highlight
  • The next-gen Xbox Magnus is reported to cost over $1000 due to high-end components.
  • Microsoft still plans to sell it at a loss to compete with the PlayStation 6.
  • For context, the PS6 is expected to cost almost half as much as the Xbox Magnus.

The last few weeks have been quite eventful for Xbox. After coming under fire for inflating Game Pass and console prices, and rumors that it is quitting the console market, Xbox confirmed the development of its next-gen version. 

However, the Xbox Magnus is expected to be a PC-console hybrid, unlike the home consoles with which we are so familiar, and will cost over $1000. But, despite the price, Microsoft plans to sell it at a loss. 

Why it matters: The Xbox chief confirmed that their next console will be a premium and high-end experience, with which comes premium hardware prices, and even higher MSRP for the finished product. 

Next-gen Xbox Specs
Xbox Magnus leaked specs point towards a very high-end, expensive chip

Youtuber Moore’s Law is Dead recently revealed the full specifications of the chip used in the Magnus, and combining all costs would take the price to over $1200, as suggested by AMD insider Kepler

However, we know for a fact that companies always sell their hardware at a loss; the same is true for both Xbox and PlayStation, and Microsoft will sell its over $1000 Magnus at a loss too to compete with the PS6. 

Next-Gen Xbox
Xbox chief called the next Xbox a more premium experience

This will make the market really interesting as Keplar also stated that the PS6 will cost half as much as the next-gen Xbox Magnus, so despite competing with Sony, this time Microsoft will be in full PC gaming territory. 

This would make sense too if it were a hybrid console, but whether fans will deem it a good deal will be seen with its release. For now, its development is full steam ahead and is expected to launch somewhere in 2027

What are your thoughts on Microsoft selling Xbox Magnus at a loss? Let us know your opinions in the comments, or join the discussion at the official Tech4Gamers Forum.

 

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