Is Series S sold at a loss?

Speaking at the WSJ TechLive event on 26th October, Xbox head Phil Spencer

Phil Spencer

Phil Spencer is an American business executive and the CEO of Microsoft Gaming. He is currently the head of the Xbox brand and leads the global creative and engineering teams responsible for gaming at Microsoft.

https://en.wikipedia.org › Phil_Spencer_(business_executive)

Phil Spencer (business executive) - Wikipedia

admitted its Xbox Series X/S consoles are sold at a loss, with the expectation that revenue will be made up elsewhere on accessories and games.

Did the Xbox Series S sell well?

XSX|S Vs.

In the last 12 months, the Xbox Series X|S has grown by 0.78 million units. The Xbox Series X|S is currently ahead by 1.13 million units. The Xbox Series X|S has sold 20.36 million units in 26 months, while the Xbox One sold 19.23 million units.

Are Xbox consoles sold at a loss?

During the WSJ Tech Live event, Spencer revealed that each Xbox console that is sold nets a loss of up to $200 per console. Spencer went on to describe consoles as a business model. "Consoles evolved to a business model much different from phones where consoles are actually sold at a loss in the market," said Spencer.

How much money does Microsoft lose on Xbox Series S?

Relying on add-ons to make money.

Xbox boss Phil Spencer has said Microsoft loses between $100 and $200 on every Xbox Series X and S sold.

How much would I get if I sold a Xbox Series S?

Your console's value will vary depending on its condition, storage, and features, but you can still get a return between $84.96 and $140.00.

I Sold My XBOX SERIES S & Here's Why

Why do consoles sell at a loss?

Companies might sell the consoles at a loss initially to lure customers, gaining market share from competitors. The strategy looks to make up for any lost revenue by selling games and online subscriptions.

Which consoles are loss leaders?

Microsoft isn't the only console manufacturer to go with a loss leader. Sony's PlayStation has been a well-known loss leader for many years, for the same reasons as Microsoft. However, Nintendo apparently bucks the trend, and the Nintendo Switch and its various models are profitable.

Is console gaming declining?

According to the report, there were 1.1 billion PC players and 611 million console players in 2022. The 2.2% decline was mostly due to a 4.2% drop in the console gaming market, as the PC games market increased by 1.8%.

How much does Xbox lose per console sold?

According to Microsoft Gaming CEO Phil Spencer, Microsoft loses as much as $200 on every Xbox it sells. According to CNBC's writeup of a recent WSJ Tech Live event, Spencer disclosed that Microsoft subsidizes the production cost of a new Xbox by about $100 to $200 per console.

Why is Series S so popular?

The Series S Is Ideal for Both Casual and Serious Gaming

If you are a hardcore gamer, then despite lacking 4K output and a huge amount of storage space, the Series S still offers current-gen gaming, so you can enjoy the titles you decide to play without a marked depreciation in quality.

What sold more PS5 or Xbox Series S?

The PlayStation 5 has sold 30.47 million units in 26 months, while the Xbox Series X|S sold 20.36 million units. The PlayStation 5 has a 59.9 percent marketshare (-0.7% year-over-year), compared to 40.1 percent for the Xbox Series X|S (+0.7% year-over-year).

What's so special about Xbox Series S?

Games load significantly faster with the custom SSD in the Xbox Series S. More playing, less waiting. With Quick Resume, you can seamlessly switch between multiple different titles and resume instantly from where you left off. "The most affordable and efficient next-generation machine."

Why is Xbox $1,000?

Roughly around $1,000 USD.

The Xbox Series Xs being sold at resale prices are believed to be from resellers taking advantage of Amazon's supply chain issues that have become a major issue since the start of the pandemic.

Who sold more Xbox or PS5?

In the last 12 months, the PlayStation 5 has outsold the Xbox Series X|S by 5.06 million units. The PlayStation 5 is currently ahead by 11.08 million units.

What sells more Xbox or PlayStation?

That generation currently stands at 117 million PS4s to an estimate of anywhere from 51-58 million Xbox Ones sold, based on analyst guessing.

Is gaming losing popularity?

Though video gaming has been around for decades, it was the entertainment of choice for many during the pandemic. Average time spent gaming soared 16.5% between 2019 and 2020, from 12.7 to 14.8 hours per week, according to The NPD Group. That growth rate barely slowed in 2021, with time spent growing to 16.5 hours.

Are consoles losing popularity?

An uneven trend

Across PlayStation consoles, the total number of new physical releases declined over 38 percent from 2018 to 2021, echoing a nearly 31 percent decline on Xbox consoles. On the Switch, meanwhile, the total number of new physical releases decreased by less than 7 percent over the same period.

Is gaming getting less popular?

Despite the decline in number of people playing video games, the industry continues to see growth in the number of hours spent gaming. There was a dramatic increase in time spent playing games from 2019 to 2020, with average hours played per week jumping from 12.7 to 14.8, respectively.

What console gets hacked the most?

Xbox users are most likely to get hacked (86%), fall victim to email phishing scams (76%), and risk using possibly unsafe cheat codes (64%). Xbox users have the worst security habits while gaming: They were often the least likely to take security precautions to prevent cyber breaches when compared to other users.

What is the slowest console?

Nintendo's Wii U, presently the slowest video game console when it comes to opening and closing apps — possibly in the history of video game consoles — was apparently just doused in heavy water vapors. No really, check out the video above. You know how the Wii U can't turn on a dime or a quarter or a semi-sized hubcap?

What was the worst selling console?

Atari 5200

The console sold only a little over a million units.

What is the number 1 selling game console of all time?

*PlayStation 2 remains the best-selling video game console of all time. Sony's beloved system tops Nintendo DS by roughly 5 million units sold, while handily outselling every other console in existence.

What is the most cheapest console ever?

The cheapest console was the Nintendo GameCube, priced at $199 (or $259 in today's dollars) back in 2001.

Is the console market shrinking?

The console games market will generate $51.8 billion in 2022, a decline of 4.2% year on year.

Is Xbox Live $120?

Microsoft has reversed its controversial Xbox Live price increase. The company announced a price hike on Friday that would have doubled the cost of a yearly subscription to the service, which is required to play games online on Xbox consoles, to $120 for many users.