Xbox chief Phil Spencer has admitted that Microsoft is losing $200 for every console sold. But is it really as bad as it seems?
During an interview with CNBC, Phil Spencer admitted that Microsoft is losing, at the most, $200 for every current Xbox console sold.
More specifically, $100 is lost for every Series X sold at $500 and $200 is lost for every Series S sold at $300.
Should Microsoft be concerned over Xbox loss?
It’s been common knowledge for years that pretty much every console manufacturer makes a loss on consoles sold.
It’s often the case that money is made up by video game sales, especially for those that are first-party titles. Well, apart from Nintendo, who apparently manages to make a profit on both consoles and games.
However, add-on sales are possibly more prominent for Microsoft, especially with so many gamers subscribing to Xbox Game Pass.
Moreover, Microsoft also offers the Xbox All Access payment plan.
Xbox Game Pass and All Access bring in the money
Xbox All Access offers customers the option to buy an Xbox Series X or Series S over an interest-free payment plan over 24 months.
Furthermore, Xbox All Access also comes with a mandatory 24-month subscription for Xbox Game Pass Ultimate.
Anyone that buys an Xbox console via this method, is certainly helping Microsoft make up for the console’s financial loss.
In short, Microsoft should not be concerned with the common practice of making a loss on console sales.
Back in October 2022, Microsoft also revealed that it has made over $16 billion from Xbox Game Pass.
However, Phil Spencer has hinted at a price increase for Xbox consoles as well as Game Pass. So, don’t feel too bad for the $1.7 trillion company.
Have you picked up a new-gen console via Xbox All Access and do you subscribe to Game Pass? Let us know across our social media channels.
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