Xbox Series vs PlayStation 5: As you may have noticed, Microsoft decided to be the first to reveal the prices of its new generation consoles, after an arm wrestling that broke records! Do you know why? Because very briefly, the company is seriously losing money on all units sold.
That is, in order to make a ‘creep’ to Sony, which according to the latest information even forced the Japanese giant to devise a new strategy, Microsoft decided to launch Xbox Series consoles for the minimum possible price. What is clear, means that the North American giant is losing money on each unit sold, in order to really be competitive with the old rival.
Xbox Series vs PlayStation 5: Microsoft is seriously losing money!
Therefore, although € 299 or € 499 is not exactly cheap, they are much lower prices than expected for new generation consoles. After all, we’ve been hearing about € 599 ~ € 699 for something like a year. In fact, everything indicates that the PlayStation 5 with Blu-Ray player should reach the market at least € 599, while the ‘Digital Edition’ version would come out at € 499 or € 549. (Plans now crossed out by Sony, after Microsoft’s all-in).
Well, according to a reputable insider, these prices are possible because Microsoft has decided to lose a significant amount of money on each console sold. Yes, on both consoles, even the low-cost Xbox Series S will hit the market below its production price.
In fact, according to the leaker, Microsoft is losing more money on the ‘S’ than on the ‘X’!
Something extremely interesting when we consider that the S Series has 6GB less RAM, half the storage capacity, a slightly weaker CPU, significantly weaker GPU and has no Blu-Ray player.
However, if you think this strategy is revolutionary … You are very wrong! Both Microsoft and Sony have chosen this path in the past. In fact, the PS3 that reached the market at € 599, had a production cost of around € 800. The goal here is to be able to sell more consoles early in the generation, to gradually offset the losses from sales of software and services.