Phil Spencer Defends Xbox Series S Brazil Price Hike; Citing Low Margins

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Price Shot Up By 45% Recently!

Story Highlights
  • The Xbox Series S has undergone a 45% price hike in Brazil, which caused concerns among the fans.
  • In a recent interview, Phil Spencer tried to justify Brazil’s sudden 45% price hike and said that the console is still being sold at small margins.
  • Therefore, Microsoft is unlikely to reverse this change anytime soon.

It has been over three years since the Xbox Series S|X were released in the market. While the hardware saw a brief spike in sales after the release of Starfield, both consoles have been struggling to do as well as the competition.

During the recent seasons of discounts, Microsoft introduced various discounts on the hardware, including a sale that dropped the Xbox Series X to just $350. Similar promotions were introduced for the Xbox Series S, but the same cannot be said for this console in Brazil.

In this region, the budget hardware saw a price hike of around 45% in October. During a recent interview, Phil Spencer explained the decision behind this move.

Why it matters: Since the Xbox Series S was pitched as an affordable console for the masses, this price increase was a huge blow for those hoping to buy the console in the future.

In the interview, Phill Spencer asserted that Microsoft held the original price of the console for three years. Meanwhile, Sony raised the price of the PS5 by a significant margin in different regions.

Phil Spencer admitted that most people would not be fond of this decision. However, he explained that electronics are already expensive, and prices cannot be directly compared between regions.

This is because of different taxation policies and restrictions. Ultimately, Xbox is a business, and these prices were inevitable. Phil Spencer said:

“We hear this concern and go back with mine. I need to manage a good business here.”

Spencer confirmed that even after the increase in prices, the Xbox Series S is being sold at the smallest margin in Brazil.

Xbox Series S Carbon Black Now Available

The main reason for the new prices is to ensure Xbox stays viable in the long term.

We think Phil Spencer has some valid points here, but this is still an unfortunate situation for the consumers. In a struggling economy like Brazil’s, the Xbox Series S is now harder than ever to buy.

Following this comment, Microsoft does not appear to be considering lower prices for the Xbox Series S in Brazil. In the past, Phil Spencer has also hinted that Game Pass prices would go up eventually despite Microsoft’s efforts to maintain steady prices.

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