A recent claim states that Microsoft is losing hundreds of dollars on each XBOX Series X/S sold.
There has been a lot of talk about XBOX consoles recently, with higher-ups already discussing a reevaluation of the next-generation console amid cost concerns. However, the company has also reaffirmed its desire to remain on consoles. But it seems there is a current situation with console sales in which the company is suffering losses.
XBOX is Suffering Major Losses on XBOX Series X/S Sales
A report from Windows Central has revealed that XBOX is experiencing significant losses in console sales. It appears that XBOX has struggled to secure sufficient memory at fixed prices, preventing it from maintaining positive profit margins. According to information provided to Jez Corden, Xbox is currently losing “not dozens, but hundreds of dollars” on each XBOX Series X|S console sold. Additionally, CEO Asha Sharma has noted that memory prices have risen by 700% since the XBOX Series X/S pricing was set.
Memory scarcity issues are impacting not only XBOX but all the major players in the industry. The CEO of XBOX has already addressed how this shortage is affecting the pricing and availability of their next-generation console. Nintendo has had to reconsider pricing for the Switch 2, while the PlayStation 5’s price has increased. Additionally, Valve is reassessing the pricing of its upcoming Steam Machine. As a result, Xbox will soon need to take action to mitigate potential losses.
In other news, Microsoft reportedly relied on Call of Duty profits to support XBOX, but an off-year for the franchise disrupted growth plans and revenue. Additionally, XBOX Chief Strategy Officer Matthew Ball has commented on the brand’s approach to exclusivity. What are your thoughts on XBOX losing hundreds of dollars on each console sale? Leave your thoughts down in the comments, and join the official Insider Gaming Discord server.
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