Microsoft kicks in up to $200 for every Xbox Series X|S it sells  

As Phil Spencer reveals

A few days ago we informed you that finally Xbox may also raise prices in the future, with Phil Spencer reporting that the company may not be able to resist price increases on consoles, games and subscriptions for much longer. Now, one more interesting piece of information was revealed by the head of Microsoft’s gaming division.

Going into details, as reported by CNBC , Spencer announced that the Xbox Series X and Xbox Series S consoles are being sold at a loss . In particular, for every console it sells, Microsoft “kicks in” from $100 to even $200 . However, the company ultimately makes a profit, thanks to the sales of its games and its subscriptions, to the new players who acquired the respective console.

Spencer explains that this business model works because of the many options available to Xbox owners. For example, there are multiple Game Pass subscription levels, as well as the option to buy your games directly. Spencer believes that this differentiation is what made the Xbox “resilient” for so long in the ongoing financial difficulties.

Of course, selling damaged consoles is not a new idea for the industry. This is a practice that Sony also adopts with the PlayStation, while during Apple’s lawsuit with Epic, Xbox testified that it has never sold a single Xbox model at a profit in its history, including the Xbox One, Xbox 360 and the home console.