Phil Spencer says Microsoft is “losing” money on Xbox Series X|S sales

Something completely normal!

During an interview, Xbox boss Phil Spencer confirmed that Microsoft is “losing” money on Xbox sales. Xbox Series X|S.

According to Spencer, Microsoft is subsidizing the portion that Xbox loses by selling the new Xbox Series X|S, something between 100 and 200 USD, almost half the cost of the console. However, we must remember that this is perfectly normal in the industry, because the real profit is coming Game sales and subscriptions, especially Xbox Game Pass. Check:

Consoles as a business model… The overall volume of games is pretty small compared to the places where people play. Consoles have evolved into a very different business model from phones, where consoles actually market at a loss.

So when someone goes and buys an Xbox at their local retailer, we subsidize that purchase between $100 and $200 with the expectation that we’ll recoup that investment over time through accessory sales and games/subscriptions.

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O Xbox Game Pass final is a subscription service that combines Xbox Live Gold It allows you to play online, chat with friends, save games Games with gold, in addition to many other advantages, has exclusive discounts; O Game pass which is a library of subscription games where you will have access to a large number of titles updated every month, including all Xbox exclusives at launch; O XCLOUD which allows you to play a huge list of games through a tablet, smartphone, browser or application for Windows 10 and through the catalog. EA PLAYWith more than 70 games electronic art. We must remember that you can sign Xbox Game Pass final only BRL 5. Click here to subscribe! * Valid for new subscribers only.

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