- Xbox Series S|X consoles were reportedly losing Microsoft $150 per unit sold until recently.
- The gaming giant will continue selling this hardware at a loss despite incoming price hikes in August.
- Microsoft might price Xbox Helix higher from the beginning as a result of these losses.
Microsoft has raised Xbox Series S and X prices multiple times during the current console generation, with the latest price hike set to go into effect from August.
Despite these price increases, the gaming giant continues to struggle with hardware profitability. A new report notes that Xbox Series S|X still lose money for each console sold.
Why it matters: Console hardware has traditionally been subsidized by game sales, subscriptions, etc. However, the current situation has made sustaining this model harder than ever, particularly for Xbox.
In a recent report, Windows Central’s Jez Corden discussed the impact of rising memory and component costs on the Xbox brand.
The insider indicated that incredibly thin margins have left Xbox still unable to profit from hardware sales. In fact, the gaming giant is still selling the hardware at a loss of about $150 per unit.
For context, the Xbox Series S|X prices will be increased by $100-150 in August. Once the new pricing goes live, it is said that consoles will still be sold at a loss, albeit with improved margins.
Ultimately, this could lead to a more expensive Xbox Helix console from the beginning. Some estimates even suggest the hardware could cost as much as $1000.
It also doesn’t help that Xbox Series S|X console sales are not the strongest at the moment. Perhaps this is why Microsoft has pivoted back to exclusives, with reports even suggesting a shift away from the planned “Steam on Xbox” strategy.
What are your thoughts on Xbox’s hardware situation? Let’s discuss in the comments below.
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Moiz Banoori, with a decade of experience in gaming and tech journalism and a degree in journalism, is a notable figure in the industry. He has contributed to various esteemed platforms, showcasing his expertise in both reporting and opinion writing.
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