Please note that this post is tagged as a rumor .
XBOX Series X|S consoles reportedly sold at losses reaching hundreds of dollars
Memory prices are said to be putting more pressure on Xbox hardware margins.
Microsoft is reportedly losing hundreds of dollars on every Xbox Series X|S console sold, according to a new report from Windows Central. The report claims that Xbox is no longer losing “dozens” of dollars per unit, but “ more in the hundreds of dollars” on current console sales. The higher loss is reportedly linked to memory pricing, which has increased since Microsoft finalized the original cost structure for the Xbox Series X and Series S.
Earlier this week, Xbox CEO Asha Sharma said in a public memo that wholesale memory prices have risen by 700% since the current consoles were priced out . This is said to be affecting Microsoft’s ability to keep hardware margins under control, with Xbox also reportedly struggling to secure enough memory at fixed prices.
XBOX spin off now on table
The hardware report now arrives alongside a separate claim from The Information, cited by Reuters, that Microsoft has considered multiple options for Xbox. Those options reportedly include a potential spinoff, restructuring Xbox as a wholly owned subsidiary, or forming a joint venture with external partners. The report says no final decision has been made.
Microsoft opens new tab is considering options for its Xbox gaming unit, including a potential spinoff or restructuring as a wholly owned subsidiary, the Information reported on Friday, citing three people with direct knowledge of the discussions.
— Reuters citing The Information
Such a move would not automatically mean that Microsoft is selling Xbox. A wholly owned subsidiary would still belong to Microsoft, but it would make Xbox more separated as a business unit, with its own structure and financial reporting. According to the report, a joint venture could also make a later sale easier, although this remains unconfirmed.
Asha Sharma and Phil Spencer, Source: Microsoft
Windows Central reports that Game Pass was used to help subsidize other parts of Xbox, but the model was affected by price changes and weaker-than-expected performance from some releases. The same report says Microsoft may rely more on OEM partners for future Xbox hardware to reduce supply chain and regional cost pressure.
Source: Reuters , Windows Central
