Microsoft might be taking a loss on the Series X and Series S, hence why both are cheaper than many were expecting.
It's finally happening. Gamers eagerly awaiting the arrival of the next-generation of console have prices to weigh up. Not all of them just yet as Sony remains silent on that front, but Microsoft has revealed the price of both its Xbox Series X and the smaller, less powerful Series S. The former will be $499, and the latter $299.
Those prices seem low and incredibly reasonable to many, especially when it comes to the Series S. So much so that some have asked whether Microsoft is taking a loss on the consoles. According to Jeff Grubb, that is indeed the case. When asked on Twitter if the Series S is being sold at a loss, Grubb replied, "Yes. It's taking a loss on both the S and X, and it seems like it's taking a bigger loss on S."
No offense to Xbox, but if the previous three generations of console have proved anything, it's that Microsoft needs to do whatever it can to get a leg up on Sony. The only time it has come close to beating PlayStation sales was via the success of the 360, and that was as much down to the PS3's failures as it was the 360's successes.
The main reason both companies have held off on a price reveal for so long was through fear that the other would undercut them. However, Xbox may have undercut PlayStation without even knowing how much the PS5 is going to cost. It's hard to imagine that any version of the PS5 is going to cost less than $299. In fact, we have a hard time picturing the PS5's digital edition costing the same as the Series S.
Xbox has been doing all that it can this week to stand itself in good stead for the next generation of the console war. Not only via the release of its prices and release date, but also the revelation that All Access will cost $35 per month, and EA Play is coming to Game Pass for free. Your move PlayStation, and it'll need to be a very impressive one.
Source: Jeff Grubb, Twitter