Microsoft claims to subsidise up to $200 per Xbox console

Recently, we reported that the Head of Xbox Phil Spencer discussed the potential for its gaming products to increase in price. This statement has been met with some apprehension from fans and in the wake of this, Spencer has offered details on just how much the company is supposedly subsidising for the Xbox Series consoles.

In a report by CNBC, Head of the Xbox Phil Spencer stated that the company’s current generation Xbox Series X and S systems are subsidised by between $100 and $200 per console. This means that while the company currently sells the Series X and S for $499 and $299 respectively, their manufacture can cost Microsoft up to $699 for the Series X and $499 for the Series S.

It’s no secret that console makers typically sell their systems at a loss, especially during the system’s beginning years. It is interesting to see however just how much of a hit the company is willing to take on the hardware in order to make even more from the software.

Spencer’s recent statement on the potential price increase can be seen below:

“I do think at some point we'll have to raise the prices on certain things, but going into this holiday we thought it was important to maintain the prices. We've held price on our console, we've held price on games… and our subscription. I don't think we'll be able to do that forever. I do think at some point we'll have to raise some prices on certain things.”

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KitGuru says: Are you surprised by this figure? Would you pay $700 for a Series X? Do you think Microsoft will increase the price of the consoles? Let us know down below.

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