Speaking at a Wall Street Journal event in Southern California today, Microsoft Gaming CEO Phil Spencer said he thinks the prices of some Xbox products or services will go up, but not Before the holidays.
“I think at some point we’re going to have to raise the prices of some things, but as we approach this holiday, we thought it was important to hold the prices down,” Spencer told the audience, relayed by Tom Warren of The Verge.
Spencer was apparently talking about price increases on Xbox in general and not about any specific product or service. But people assume he’s referring to potential price increases for Xbox consoles or services like Xbox Game Pass.
Subscription services across all entertainment are steadily seeing price increases – Disney+ is the latest to see a price hike, hitting $11/month in December. Netflix, Hulu and others also raise prices from time to time.
If it’s a price increase for the Xbox console that’s coming, that wouldn’t be too surprising either. Supply chain and logistics issues have driven up production costs, and Microsoft may decide to pass the costs on to the consumer with a price hike. Sony did just that with its recent PS5 price hike in certain regions.
In August, following Sony’s PS5 price hike, Microsoft said it was “constantly evaluating” its business with respect to pricing, but existing US MSRPs for the Series S ($300) and the Series X ($500) will remain in place for the time being. However, the company has never strictly ruled out a price hike in the future.
Not raising prices before the holidays are over is apparently a strategic move on Microsoft’s part to help make the Xbox platform stand out even more as a more economical choice for people getting into the game. game. After all, the real money in games comes from software and services, so even if profit margins on Xbox consoles suffer due to supply chain and logistics issues, revenue from software and services services could help fill the void.
Microsoft’s Xbox division is booming right now. Xbox has made more money in the past three months than it has ever made in any other first quarter period in the company’s 20-year history.
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