Is Xbox Series S selling at a loss?

Microsoft loses up to $200 on each Xbox console it sells. 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.

Is Xbox losing money on Series S?

Xbox boss Phil Spencer has admitted that Microsoft continues to suffer a substantial loss on every Xbox Series X and Series S sold. That's in contrast to Sony, which no longer makes a loss on the PS5.

Is Xbox Series S selling well?

The Xbox Series X|S has sold 20.36 million units in 26 months, while the Xbox One sold 19.23 million units. Month 26 for the Xbox Series X|S is December 2022 and for the Xbox One is December 2015.

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.

Is the Xbox console 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.

I Sold My XBOX SERIES S & Here's Why

Why are Xbox sales declining?

Xbox content and services revenue overall was down 12%, with Microsoft attributing the dip to a few factors: decreased spending on first-party content, lower monetization in third-party content, and a strong prior year comparable.

Why are most consoles sold 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.

How many Xbox Series S sold as of today?

Xbox Series X/S has sold 18.5 million versus PS5's 30 million, analysis firm estimates | VGC.

Why is Xbox Series S cheaper than PS5?

The lower price is due to the lower amount of power and SSD storage space compared to the Series X, but it is still a reliable console.

How many Xbox Series S have been sold?

Microsoft has sold 18.5 million Xbox Series X and Series S consoles since launch, according to market research company Ampere Analysis (via VGC). If Microsoft no longer shares console sales numbers, Sony announced in its latest earnings report in February that PlayStation 5 sales have crossed 32 million units.

Is Xbox Series S worth it in 2023?

It is also the cheapest. Multiple quality FHD monitors are in the $60 to $70 range. Thus, the Xbox Series S can further build on its promise of affordable gaming. Coupled with the Xbox Game Pass subscription, the more affordable gaming console offers the best value, even three years from its release.

What should I sell my Xbox Series S for?

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 is the disadvantage of Xbox Series S?

Xbox Series S Cons:

Weaker GPU and less RAM than the Xbox One X. No disc drive. Limited to 1080p/1440p.

Why are Xbox Series S games $70?

“This price reflects the content, scale, and technical complexity of these titles,” a spokesperson said. The games will be available as part of Microsoft's subscription service, Game Pass, for $9.99 a month on Windows and Xbox consoles. Many top games remained at a $60 price point for nearly two decades.

Is Xbox Series S stronger than PS4?

Across a variety of cross-gen software the Series S is in a much stronger position, delivering significantly more performant games than the enhanced last-gen consoles. With generational improvements in CPU speed and storage, the Series S has major fundamental advantages that eighth-gen consoles simply can't match.

Why is Xbox Series S better than Xbox One S?

When it comes to resolution, the Xbox Series S is still the better option. With a max resolution of 1440p when playing games, compared to the Xbox One S's 1080p. However, if you are a big fan of 4K, neither of these consoles have the specs for true native 4K. The Xbox Series S features upscaled 4K, which is great.

Why everyone buying PS5 instead of Xbox?

However, while the PlayStation 5 and Xbox Series X are similar in terms of quality and performance, the PS5's exclusive games and gameplay-focused features make it more enticing for buyers who want an immersive experience and don't want to miss major releases.

Why is Xbox Series S sold out everywhere?

One of the reasons for Xbox Series X and Series S stock shortages is due to scalpers snapping up large amounts of next-gen consoles in one big sweep and then selling them for extortionate prices; we're taking thousands of dollars for a $499 games console.

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 the console market shrinking?

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

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%.

Is Microsoft getting rid of Xbox?

Microsoft will be launching its next generation gaming console, the Xbox Series X, sometime late in 2020. Ahead of the launch, the company has discontinued its Xbox One S and Xbox One S digital consoles. Now, the word is that the company has also discontinued its Xbox Live Gold subscription.