Phil Spencer, CEO of Microsoft Gaming and head of Xbox, has confirmed that Microsoft loses between $100 to $200 on the sale of Xbox Series consoles. Spencer claims that Microsoft opted to sell the consoles at a loss as it expects to make the money back from sales of games, accessories and subscription services.

Spencer has also confirmed that Microsoft will be raising the prices of Xbox offerings but won’t do so until after the holiday period as he believes that it was important to maintain prices for the festive period. Spencer did not reveal which of the Xbox offerings will be going up in price. The price increase confirmation comes just weeks after Spencer claimed that Microsoft would not follow Sony in increasing prices due to the economical challenges consumers faced.

Microsoft also confirmed to the Wall Street Journal that Xbox Game Pass failed to meet the growth targets for a second consecutive year and that the service is profitable. Microsoft had aimed for a 73% increase for the financial year ending in June 2022 but only managed to achieve a 28% increase. This resulted in a decreased payment for Microsoft CEO Satya Nadella and other top executives.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s