Microsoft Reportedly Selling Xbox Series X at a Loss, Series S at Even Bigger Loss

When the Xbox Series X and the Xbox Series S release later this year, Microsoft will apparently [...]

When the Xbox Series X and the Xbox Series S release later this year, Microsoft will apparently take a decent loss on both consoles, with the latter being more significant. The rumor comes from analysts Benji-Sales and Jeff Grubb on Twitter, and their exchange can be viewed below. Given the fact that Microsoft has always lost money on Xbox hardware, it isn't too surprising to hear that the company will be doing so this console generation. It's unlikely that Microsoft will give any concrete details on how much money they stand to lose per unit, but fans can speculate away, now that specs have been released for both consoles.

It should be noted that Microsoft is not the only gaming company that takes a loss on its gaming hardware. Sony and Nintendo both lose money on their consoles, though it should be noted that Nintendo sold at a profit much longer than other companies did. However, gaming companies have always made up the difference on console losses through the profits on software sales. If Microsoft truly is selling the Xbox Series X and the Xbox Series S at significant losses this generation, the company will have to make up for it with sales of games like Halo Infinite, Fable, The Gunk, and Gears Tactics.

Now that Microsoft has revealed the $499 price for the Xbox Series X and the $299 price for the Xbox Series S, it will be interesting to see how much the PlayStation 5 will retail for. Over the years, PlayStation hardware has consistently sold better than Xbox hardware, but Microsoft's two options could prove to be a threat this generation if Sony's console doesn't come in at a competitive price. At this time, there's no telling when Sony might reveal a price and launch date for the PS5, but it will likely happen in the coming days. For now, gamers will just have to speculate about what the future might hold for Sony and Microsoft.

Are you planning on picking up an Xbox Series X or an Xbox Series S? Are you happy with the price point for the two consoles? Let us know in the comments or share your thoughts directly on Twitter at @Marcdachamp to talk about all things gaming!