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 2. News


MICROSOFT WON'T DRIVE UP XBOX PRICING AMIDST PS5 PRICE HIKE

By Anton Shilov published 7 days ago

Does it make sense to follow suit?

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Comments (20)

(Image credit: Microsoft)


Sony's decision to increase the price of its PlayStation 5 game consoles due to
inflation rates and the global economic environment has surprised the industry,
as this is not something console developers usually do. But since the company
did it, Microsoft will not follow suit with its Xbox Series X|S machines.



Our colleagues from WindowsCentral (opens in new tab) have asked Microsoft about
its plans concerning the prices of its latest Xbox consoles and got a relatively
unambiguous answer.



"We are constantly evaluating our business to offer our fans great gaming
options. Our Xbox Series S suggested retail price remains at $299 (£250, €300)
the Xbox Series X is $499 (£450, €500)."




Just like Sony, Microsoft still cannot meet the demand for its Xbox Series X
game console almost two years after its release. Amazon sells these systems
(opens in new tab) only to qualifying customers with invites. In contrast,
Newegg offers Series X only in combos (opens in new tab)valued well above the
MSRP of $499 (with a $709 (opens in new tab) combo being the cheapest option).
Even though demand for Xbox Series X exceeds supply, Microsoft has no plans to
hike the product's price, at least for now.

With an estimated 16 million units sold worldwide, Microsoft's latest Xbox
Series X and Series S game consoles are somewhat less successful than Sony's
PlayStation 5, whose life-to-date shipments exceed 22 million. Meanwhile,
Microsoft's Xbox is traditionally considerably less popular than Sony's
PlayStation in Japan and Europe.



Like Sony's PlayStation 5, Microsoft's latest Xbox Series X|S game consoles are
based on system-on-chips designed by AMD and featuring Zen 2 general-purpose
cores and an RDNA 2-based graphics processing unit. The latest consoles from
Microsoft and Sony have similar, yet incompatible, system architectures too and
even have identical RAM and storage capacities (16GB GDDR6, 1TB storage).
Microsoft's consoles are produced by Foxconn and Flextronics, whereas Sony uses
its production capacity and Foxconn's services.

In general, the two companies seem to face similar challenges with parts
procurement, production capacity, logistics, and inflation rates, yet only Sony
decided to increase the pricing of its PS5.


Anton Shilov
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Freelance News Writer

Anton Shilov is a Freelance News Writer at Tom’s Hardware US. Over the past
couple of decades, he has covered everything from CPUs and GPUs to
supercomputers and from modern process technologies and latest fab tools to
high-tech industry trends.




More about...
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See more latest

Topics
Consoles
See all comments (20)


20 Comments Comment from the forums
 * Gam3r01
   On the one hand, this is a solid marketing move to attempt to attract more
   sales.
   On the other hand, consoles are not usually something the typical person
   falls for marking over, but rather habit.
   Most people out there looking to get a console probably have one in mind, and
   wouldnt easily be convinced otherwise.
   Reply
 * 10tacle
   > Gam3r01 said:
   > Most people out there looking to get a console probably have had one in
   > mind, and wouldn't easily be convinced otherwise
   
   
   Besides myself, I know quite a few people in my gaming circle of friends out
   there who have a long history of Playstation and Xbox console owning and
   gaming over PC mostly due to cost...
   Read More Reply
 * Mandark
   They’re not raising prices on imaginary product? You still can’t buy one in
   the store so basically it’s vaporware
   
   It’s been so long I’m not even interested anymore. Don’t care if they ever
   sell another one. good luck on them selling games when they can’t even get
   the hardware out the door
   
   Instead of raising prices they...
   Read More Reply
 * pclaughton
   > Mandark said:
   > They’re not raising prices on imaginary product? You still can’t buy one in
   > the store so basically it’s vaporware
   
   They've sold over 38,000,000 units combined. If that number of functioning
   products in the wild counts as "vaporware", then that word has been overused
   to the point of losing all meaning.
   Reply
 * Mandark
   > pclaughton said:
   > They've sold over 38,000,000 units combined. If that number of functioning
   > products in the wild counts as "vaporware", then that word has been
   > overused to the point of losing all meaning.
   
   That many and I still can’t buy one. Like I said vaporware. I don’t know how
   they’ve sold that many. I’ve never seen them in the stores...
   Read More Reply
 * TJ Hooker
   > Mandark said:
   > I’ve never seen them in the stores and they’re not available on Amazon or
   > any other place.
   
   Don't know if you're in the US, but if so you can buy one right now at
   Walmart.com or Xbox.com.
   Reply
 * Gam3r01
   > Mandark said:
   > That many and I still can’t buy one. Like I said vaporware. I don’t know
   > how they’ve sold that many. I’ve never seen them in the stores and they’re
   > not available on Amazon or any other place.
   > 
   > If you don’t like my comments then too bad it’s vaporware until every
   > person who wants one can buy...
   
   Read More Reply
 * Co BIY
   By the numbers Microsoft isn't as effected by the "parts procurement,
   production capacity, logistics, and inflation rates, " because they are not
   having to build as many units.
   
   I can't blame Sony for raising the price to maintain the margin on a winning
   product.
   
   I also applaud Microsoft for holding the line on their MSRP....
   Read More Reply
 * spentshells
   Sony is again selling a superior product ps3 wasnt that great but ps4 and ps5
   are quality products.
   Reply
 * Mandark
   > TJ Hooker said:
   > Don't know if you're in the US, but if so you can buy one right now at
   > Walmart.com or Xbox.com.
   
   Refurbished on xbox.com. I never see new. As of right now I don’t see any
   Reply
 * View All 20 Comments

Show more comments

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