Microsoft is reportedly losing $150 on every Xbox console sold

Following the appointment of Asha Sharma as the new CEO of Xbox, we’ve gotten a litany of pretty candid statements from the executive, with Sharma putting emphasis on the fact that Xbox is suffering from high manufacturing costs – partially as a result of the ongoing RAM crisis. While no concrete figures have been shared officially, according to insiders, Microsoft is losing around $150 for every Xbox Series X/S console being sold.

In a report by known Microsoft leaker Jez Corden, discussing the future prospects of Microsoft’s Xbox Helix and why having 3rd-party storefronts on the console “no longer makes sense”, the insider offered an interesting detail on the console maker’s current situation, claiming:

“I’ve been told Xbox is losing around $150~ per Xbox Series X|S sold right now even after the planned August 2026 price hike”. For the uninitiated, Microsoft announced last month that they would be increasing the RRP of their Xbox consoles in August, with the new prices landing at around $500 for the Series S and $800 for the Series X.

Assuming Corden’s report is true, then a 1TB Series X costs Microsoft as much as $950 to manufacture – an unsustainable amount of loss per-console.

What this means for the next-gen Xbox Helix, we will have to wait and see, but it’s safe to say that the industry is currently in a pretty bad state.

KitGuru says: What do you think of these reported costs? Can Microsoft recover? Does Xbox moving back towards exclusives make more or less sense with these costs in mind? Let us know down below.

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