Microsoft says it loses $200 for every Xbox console sold

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Xbox chief Phil Spencer has admitted that Microsoft loses $200 for every console sold. But is it really as bad as it seems?

During an interview with CNBC, Phil Spencer admitted that Microsoft loses at most $200 for each current Xbox console sold.

Specifically, $100 is lost for each Series X sold at $500 and $200 is lost for each Series S sold at $300.

Should Microsoft be worried about the loss of Xbox?

It has been common knowledge for years that almost all console manufacturers make a loss on consoles sold.

It often happens that the money is made from the sales of video games, especially for those that are first-party titles. Well, apart nintendowhich apparently manages to make a profit on consoles and games.

However, add-on sales may be more important for Microsoft, especially with so many gamers subscribing to Xbox Game Pass.

Additionally, Microsoft also offers the Xbox All Access payment plan.

Xbox Game Pass and All Access are making money

Xbox All Access offers customers the option to purchase an Xbox Series X or Series S on a 24-month interest-free payment plan.

Additionally, Xbox All Access also comes with a mandatory 24-month subscription for Xbox Game Pass Ultimate.

Anyone who buys an Xbox console through this method definitely helps Microsoft compensate for the financial loss of the console.

In short, Microsoft shouldn’t be concerned with the common practice of making a loss on console sales.

Back in October 2022, Microsoft also revealed that it made over $16 billion from Xbox Game Pass..

However, Phil Spencer hinted at a price increase for Xbox consoles as well as Game Pass. So don’t feel too bad for the $1.7 trillion company.

Purchased a next-gen console through Xbox All Access and subscribed to Game Pass? Let us know on our social media channels.

While you’re here, be sure to check out our video of the week. 10 of the scariest horror games of all time are presented. What’s your favorite horror game?

Featured image credit: Microsoft/Source: Eurogamer Going through CNBC

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