Phil Spencer Says Xbox Prices “Won’t Go Down”
Previously, gaming consoles could be purchased at relatively affordable prices, at later stages of life due to lower manufacturing costs for the company that could be passed on to consumers. But According to the head of XboxPhil Spencer, this is no longer the case.
He said:
“Prices will not go down. We see it now, and that’s why we decided to launch the Xbox Series S. I know there are many questions like ‘what is its role?’ We wanted to make sure we had a device for under $300 because we wanted to grow, and we think the lower price point will be important for new families or new players entering the market.”
Spencer added:
“For us, when thinking about our device goals and reaching more customers, the price point is important. But you won’t be able to start with a $500 device and expect it to drop to $200, as it used to. Because the basic components we use – with the rapid and continuous improvement in technology – were declining, but now it is not the case. Where you can take specifications and use them over 10 years and reduce their prices.”
In fact, current-generation console prices have increased since its launch in November 2020. Sony raised PS5 prices by up to 12.5% in several countries last August, blaming “high inflation rates globally, as well as negative currency trends.”
Microsoft followed suit a year later, raising Xbox Series X prices this month in most countries to match PS5 prices. It said the adjustments were made to “reflect competitive conditions in each market”.
However, over the past two months, Sony has offered temporary PS5 price cuts, fueling speculation that it is trying to liquidate inventory ahead of unconfirmed plans to launch a new PS5 model with a detachable disc drive.
It was said that the new PS5 model will cost the same as the current PS5 Digital Edition console, which is $100 less than the standard PS5. The Xbox manufacturer also said it believes Sony is preparing to launch a separate PS5 Pro console.
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