Xbox Is Reportedly Losing Money on Every Console It Sells, Thanks to AI-Powered RAM Crisis
Windows Central says memory price increases have pushed Xbox hardware losses to about $150 per console, and a September price hike may not restore profitability.
- According to Windows Central, Microsoft is losing around $150 per Xbox Series sold recently due to memory price increases. The console will reportedly continue losing money even after the August price hike.
- Xbox CEO Asha Sharma wrote that component shortages impacted the company more than its rivals, stating, "we have been impacted more greatly than many of our peers due to the choices we made over the last half decade."
- Due to losses over the past year, Xbox is set to layoff approximately 3,200 people before year-end. While Sony and Nintendo report console sales publicly, Xbox stopped doing so, though estimates place lifetime sales at 35 million units.
- Sharma stated, "we need a new business model and partnerships for hardware as we remain committed to Project Helix." Video game consoles are typically sold at a loss at launch, with services helping recoup costs.
- Although Sony's PlayStation has been profitable since 2021, Nintendo recently sold the Switch at a loss when it launched last year. Nintendo President Shuntaro Furukawa said they introduced price hikes because "the profitability of our hardware would suffer significantly.
14 Articles
14 Articles
Bad news for gamers: Starting Saturday, Microsoft increases the price of its Xbox consoles. Cause: the surge in the cost of components, especially memory chips.
It has always been known that consoles are sold at a loss, companies do not intend to make money from that sale, but they do it with video games and the different services they offer. On this occasion, it seems that Jez Corden has been in charge of stating when money would be losing Microsoft every time he sells an XBOX. However, this has not always been so, since this loss is due to the current market situation, which makes everything much more…
Xbox is reportedly losing money on every console it sells, thanks to AI-powered RAM crisis
The incessant need for more AI data centers has nearly butchered our hobby, but don’t worry, the corporations are feeling the heat, too. Like all gaming hardware, the Xbox Series X|S’s infrastructure requires RAM. That RAM has to be purchased before being put into the machine. And so, recently manufactured consoles are subject to the disgustingly high prices of these components, thanks in large part to the high demand of AI data centers springin…
Xbox Series X|S Have Reportedly Received A Substantial Price Hike In Japan
Microsoft’s current-gen consoles, the Xbox Series X and Xbox Series S, have reportedly received a substantial price hike in Japan. Several retailers in Japan, including Yodobashi, Sofmap, Bic Camera, have increased the price of Xbox Series X and Xbox Series S consoles (via Renka_schedule and Genki_JPN on Twitter/X), revealing post-hike prices that have seen an increase by 30,000 Yen. While the move is a part of Microsoft’s scheduled plans to inc…
Following the appointment of Asha Sharma as CEO of Xbox and the subsequent reorganization, the company’s management has made several public statements. The new head emphasizes that Xbox is currently suffering from very high production costs, partly caused by the global RAM component crisis. The situation has not been significantly improved by the recent price increases for Xbox consoles and video games. The well-known […]
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