WSJ: Microsoft subsidizes the cost of Xbox consoles to the tune of $100 to $200 per console

[Gizmo_Duck]

This is directly from the mouth of Phil Spencer during his WSJ interview. He says the increasing costs on households regarding energy, etc. and subsequently these costs effect the bottom line for Microsoft also and flagging that hardware and subs will be likely increasing in the future. Sounds like the same exact answer Sony gave for their price increase….interesting.

Today, Spencer said, Microsoft gives people choice in how much they'd like to spend if they want consoles. The company offers the $499 Xbox Series X and the less powerful $299 Xbox Series S. Microsoft subsidizes the cost to the tune of $100 to $200 per console, with the expectation that it will make the money back on sales of accessories and storefront purchases, he said. It's up to gamers if they'd like to pay $10 or $15 per month for Game Pass subscriptions. They can also buy games outright, or play certain games for free.

Spencer said he doesn't think Microsoft will be able to keep the prices of games constant forever. But they can provide impressive amounts of entertainment in comparison with other pursuits. "People can play video games for hundreds of hours," he said.

https://video-api.wsj.com/api-video/player/iframe.html?guid=195A5DB5-FF0F-48A8-90CD-9662D56A108C&playerid=twittercard

Microsoft exec says gaming is 'somewhat resilient' to economic weakness

In the Global Financial Crisis, Microsoft's Xbox console business had the best calendar year to date, and Xbox content and services got a pandemic bump in 2020.

www.cnbc.com

He also confirms Elder Scrolls 6 will be a full exclusive

 

[MeachTheMonster]

Sony stans

 

[Gizmo_Duck]

Sony stans

This is the place holder for where you can think up a logical argument to defend xbox even if it doesn’t need defending

 

[Diondon]

Sony’s $499 PS5 is no longer selling at a loss

The PS5 won’t be costly like the PS3.

www.theverge.com

 

[Black Mamba]

Told you xbots bruvs was finna be in trouble
Now how long till the investors say enough is enough and decide to fold that entire gaming division up
FOOT ON NECK SEASON

 

[Gizmo_Duck]

They are basically just preparing their users for price increases, they are slowly talking them into it. Sony ripped the band-aid off so people were acting like its the end of the world, by the time Microsoft decide to double the price of gold (or eliminate it in favor of gamepass) and raise game prices and such people are gonna still be on some “see, Phil said it would be like this “

Despite the cries of xbox fans about war chest and unlimited money, Microsoft is taking a severe hit on consoles this holiday because of inflation and they are gonna grit their teeth through it to get those holiday units moved. Microsoft didn’t become a two trillion dollar company by taking endless losses

 

[MeachTheMonster]

This is the place holder for where you can think up a logical argument to defend xbox even if it doesn’t need defending

No it’s laughing at y’all being dumb in yet another thread.

It’s been known since forever that console makers not named nintendo don’t make money off console sales. That’s why nintendo hardware is always so weak.

Your sony stan homie @Diondon came in with that link thinking he’s got a win but his dumbass didn’t read passed the headline. Sony is losing money on consoles too. And they just had to raise prices.

Sony likes to play coy about it and say they aren’t losing money on the consoles themselves but when you factor in all the associated costs with getting consoles in homes, sony is taking a loss on every console. Phil just being honest here on what it takes to get consoles in homes.

So basically y’all in here High Fiving cause sony is selling a technically inferior/cheaper product and charging more for it.

As usual sony stans dumb AF. First i thought y’all was playing, but y’all really are dumb then a muthufukka

 

[Pull Up the Roots]

The price increases after the holidays are going to be killer. I wonder if they would dare to raise the hardware price in NA. They're probably going to have to given it's the only territory where they sell well enough. Spooky season is approaching.

 

[Gizmo_Duck]

No it’s laughing at y’all being dumb in yet another thread.

It’s been known since forever that console makers not named nintendo don’t make money off console sales. That’s why nintendo hardware is always so weak.

Your sony stan homie @Diondon came in with that link thinking he’s got a win but his dumbass didn’t read passed the headline. Sony is losing money on consoles too. And they just had to raise prices.

Sony likes to play coy about it and say they aren’t losing money on the consoles themselves but when you factor in all the associated costs with getting consoles in homes, sony is taking a loss on every console. Phil just being honest here on what it takes to get consoles in homes.

So basically y’all in here High Fiving cause sony is selling a technically inferior/cheaper product and charging more for it.

As usual sony stans dumb AF. First i thought y’all was playing, but y’all really are dumb then a muthufukka

I didn’t high five anything, i pointed out the fact that Microsoft faces the same economic burdens as Sony, the only difference is they are being backed by a trillion dollar company that can eat losses. Thats kind of the whole point I’ve always made, Microsoft whether its gamepass, hardware, or lack of sales can continually eat cost related to the products they offer.

Thats why i also find it hilarious to hear them say sony could put their big games on ps plus day one, no they cannot. Microsoft is loss leading into the unforeseeable future

 

[MeachTheMonster]

I didn’t high five anything, i pointed out the fact that Microsoft faces the same economic burdens as Sony, the only difference is they are being backed by a trillion dollar company that can eat losses.

Nobody ever denied this. Why wouldn’t they be effected global economic realities?

Who are you arguing with or trying to convince

 

[Gizmo_Duck]

The price increases after the holidays are going to be killer. I wonder if they would dare to raise the hardware price in NA. They're probably going to have to given it's the only territory where they sell well enough. Spooky season is approaching.

They’re dead in the water if they try to raise hardware prices. It will most likely be software, starting at 70 dollars for their next gen games, and gamepass increases.

They probably gonna kill that 1 dollar gold conversion also

 

[Gizmo_Duck]

Nobody ever denied this. Why wouldn’t they be effected global economic realities?

Who are you arguing with or trying to convince

You’re the one arguing with me

This is the place holder for where you can think up a logical argument to defend xbox even if it doesn’t need defending

 

[MeachTheMonster]

You’re the one arguing with me

Your claimed purpose of this thread is

pointed out the fact that Microsoft faces the same economic burdens as Sony, the only difference is they are being backed by a trillion dollar company that can eat losses.

Who are you trying to convince if this?

 

[Gizmo_Duck]

Your claimed purpose of this thread is

Who are you trying to convince if this?

The people who think Sony were “anti-consumer” about raising prices, and that its no big deal for them to put big games day one on PS Plus.

 

[Diondon]

No it’s laughing at y’all being dumb in yet another thread.

It’s been known since forever that console makers not named nintendo don’t make money off console sales. That’s why nintendo hardware is always so weak.

Your sony stan homie @Diondon came in with that link thinking he’s got a win but his dumbass didn’t read passed the headline. Sony is losing money on consoles too. And they just had to raise prices.

Sony likes to play coy about it and say they aren’t losing money on the consoles themselves but when you factor in all the associated costs with getting consoles in homes, sony is taking a loss on every console. Phil just being honest here on what it takes to get consoles in homes.

So basically y’all in here High Fiving cause sony is selling a technically inferior/cheaper product and charging more for it.

As usual sony stans dumb AF. First i thought y’all was playing, but y’all really are dumb then a muthufukka

Your butthurt conjecture disproves nothing.
The $500 PS5 does not sell at a loss
MS doesn't have any consoles that don't sell at a loss
Xbots