Xbox boss says current-gen console prices ‘won’t come down’ like they used to
Micorosft’s head of gaming has said the price of current-gen consoles won’t come down over time in the same way as during past generations.
While previously it could be relatively cheap to buy console hardware at later stages of its lifespan because reduced manufacturing costs might be passed on to consumers, Xbox boss Phil Spencer told Eurogamer that’s no longer the case.
“The prices aren’t coming down,” he said. “We see it now, and that’s why we did Xbox Series S. I know there’s a bunch of questions like, ‘what is it doing?’ We wanted to make sure we had a sub-$300 console because we want to grow, and we think an entry level price point for many new families or players coming into the market is going to be important.”
Spencer added: “For us, thinking about where our hardware is going and reaching more customers, price point is important. But you’re not going to be able to start with a console that’s $500 thinking it’s gonna get to 200 bucks. That won’t happen. Because the core components that you use – you’re used to Moore’s Law shooting up and to the right – but your components… you can’t buy them anymore as a hardware maker because nobody’s making that kind of RAM or other components.
“It’s not the way it used to be where you could take a spec and then ride it out over 10 years and ride the price points down. It’s why you see console pricing relatively flat.”
In fact, the price of current-gen consoles has increased since they launched in November 2020. Sony raised PS5 prices by up to 12.5% in numerous countries last August, blaming “high global inflation rates, as well as adverse currency trends”.
Microsoft followed suit a year later, raising Xbox Series X prices this month in most countries to be in line with those of
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