A retail source told Pearce that the Xbox Series X will cost nearly $600, which is surprising given previous rumours had suggested the Microsoft’s next-generation console could cost as low as $400. As mentioned near the 41-minute mark in the video below, the source messaged a picture of their work screen that had the Xbox Series X price on it.
That’s arguably some pretty compelling evidence that the Xbox Series X could indeed be a more expensive then first thought. However, the price could be simply a holding one for the Xbox Series X, given Microsoft hasn’t announced any formal pricing.
But with the console launching in November, it’s arguably a little late for holding prices. Retailers will likely want to decide how much stock of the console they’ll want to get in based on how expensive it is and how likely it will sell at its recommended retail price.
With the PS5 tipped to cost $500, there were rumors that the Xbox Series X would undercut it by $100. Such a price cut would indicate that Microsoft wants to get people into its Xbox ecosystem and may be willing to take a loss on its console hardware.
However, logic would dictate that as the Xbox Series X offers 12 teraflops of power compared to the PS5’s 10.28 teraflops, it would be the more expensive console. So paying some $100 more for an Xbox Series X over a PS5 would make sense given the gap in power.
And Xbox boss Phil Spencer has said that Microsoft isn’t concerned about selling lots of Xbox Series X units, as the plan is to build out the Xbox ecosystem with Xbox Game Pass, xCloud game streaming, cross-generation gaming, and Windows 10 PCs. So if the Xbox Series X costs nearly $600 and people decide not to buy it at launch and go for a PS5 instead, Microsoft still has plenty of ways to bring gamers on board.
If this seems like a bold move by Microsoft, it’s worth remembering that Xbox Game Pass currently has 10 million subscribers, as reported by The Verge in April. With Game Pass costing $4.99 to $14.99 a month, Microsoft is essentially making around $100 million a month from the service already. So if next-generation Xbox games, which are coming to the Xbox One for the first two years, encourage more people to sign up for Xbox Game Pass even without getting an Xbox Series X, Microsoft will still make millions upon millions of dollars.
Of course, we’ll have to wait and see how this all plays out when the new consoles come in November. But it’s looking like neither will really lose in this next-generation console war.