The Xbox Series S grabs a massive price hike and now costs as much as a PS5 Digital in Brazil, and Microsoft won't explain why
The Xbox Series S grabs a massive price hike and now costs as much as a PS5 Digital in Brazil, and Microsoft won't explain why
Explanation:
MS: "I like money"
I thought of a bigger number.
The Xbox Series X/S consoles are sold at a loss of up to $200 per console[1][2][3][5].
Microsoft subsidizes the sale of each console because it expects to make this back through game sales and subscriptions to Xbox Game Pass[1][2][3][5]. This is a common business practice in the gaming industry, as companies often sell consoles at a loss and recoup the money elsewhere, such as from software sales and subscriptions[2][4][5].
The loss is not because the hardware costs more than the retail, but because of the R&D costs and the forecasted sales[6]. Microsoft has never earned a profit from selling Xbox consoles, including the Xbox One, 360, and the original console[4].
Citations: [1] Xbox Series X Consoles Sold At A $200 Loss, Says Phil Spencer - TheGamer https://www.thegamer.com/xbox-series-x-s-sole-at-loss-200-dollars/ [2] Microsoft loses up to $200 on each Xbox console sold | Eurogamer.net https://www.eurogamer.net/microsoft-loses-up-to-200-on-each-xbox-console-sold [3] Phil Spencer Reveals How Much Xbox Loses With Each Console Sold - Game Rant https://gamerant.com/xbox-console-sales-losses/ [4] Microsoft Says Xbox Consoles Have Always Been Sold at a Loss - PCMag https://www.pcmag.com/news/microsoft-says-xbox-consoles-have-always-been-sold-at-a-loss [5] Microsoft takes a $100-$200 loss on all Xbox Series X|S sales - TrueAchievements https://www.trueachievements.com/n51690/phil-spencer-xbox-series-x-s-loses [6] Microsoft takes a $100-$200 loss on all Xbox Series X|S sales : r/XboxSeriesX - Reddit https://www.reddit.com/r/XboxSeriesX/comments/yj7b3b/microsoft_takes_a_100200_loss_on_all_xbox_series/
I mean, that changes nothing about them now charging significantly more for a market where nothing has changed.
Also if they wanted to shift and be like 'sold at true hardware price' then they should stop charging for things like Xbox Live or taking such a cut from the developers for the 'privilege' of running on their console.
It's down to profit, it always is.
For a while now regional pricing here has been nothing more than a suggestion at best. And then they wonder why piracy is so rampant around these parts...
How can we even blame people for pirating when games cost so much in their currency? It's not right.
Prices in Brazil are much higher compared to the US. Once you convert that new price of R$3,599 to USD you're looking at $721. Prices are just higher in Brazil because reasons.
Reason: cause money, no article needed
Yep, everyone expected the economy to slow down as interest rates continue to rise..... But Americans are still spending like crazy, so why not spike the price?
That feels like the physical version of how most publishers treat Steam regional pricing suggestions here, and I imagine in a lot of other developing countries.
For reference, the suggested equivalent of 60 USD was something close to 180 BRL last I checked but you'd be hard pressed to find an actual AAA game for less than 250~300 BRL. Not coincidentally, that's also in the neighborhood of a straight USD to BRL conversion at the usual rates.
Actually 60 USD is 300 brl. 1 dollar = 5 reais
1 to 3 was like, some 5 or 6 yrs ago
That's not what I'm talking about, Steam's recommended prices don't follow exchange rates because they actually try to take every country's economic reality into account.
See here, the latest suggested conversion for 60 USD is actually 162 BRL which honestly is pretty reasonable.
This is the best summary I could come up with:
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News initially broke from Brazilian outlet The Enemy, which received a statement from Microsoft indicating that the price of the Xbox Series S was going up, but not the price of the Xbox Series X.
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"In the coming weeks, we will begin to communicate price adjustments for Xbox Series S consoles in Brazil."
"While the console remains an important part of the Xbox ecosystem, we will continue to offer great games, skills and options for gamers in Brazil so they can play how and where they want."
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This price increase is only applying to the white 512GB Xbox Series S, not the 1TB black model.
When we reached out to Microsoft for comment, the company referred us to the The Enemy's article, confirming the price hike.
I'm aware that the economy around the world is troubled and different regions have different specific issues, but this seems like a mistake.
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The original article contains 294 words, the summary contains 165 words. Saved 44%. I'm a bot and I'm open source!
Maybe the 512gig is exiting production and so it's going up in proce as it gets harder to find
people bought the series s because it was cheaper than ps5, it can't compete with the ps5 at the same price
In Brazil...
? exactly, i'm brazilian, that's what i'm talking about