Xbox Prices Going Up Globally: Microsoft Stands Firm
Microsoft has confirmed that it will not be following in Sony’s footsteps by increasing the price of the Xbox Series X and S, despite the global economy affecting production costs.
Sony Announces Price Increase
Just last year, Sony announced a $50 price increase for the PlayStation 5 and PS5 Digital Edition across several markets, citing inflation and adverse currency trends. Already, some areas have seen the effect of the increased prices, with the standard PS5 in the UK costing £479.99, up from £449.99. Sony isn’t the only company to increase prices, however. After it suffered from supply chain issues, Meta increased the price of Quest 2 VR headset by $100.
Microsoft Stands Firm
Microsoft, however, has refused to make any similar changes to compensate for inflation. A statement released to Windows Central confirmed that no such plans have been or will be made, with the consoles staying at their current US, UK, and European prices of $299 for the Series S and $499 for the Series X. By refusing to change prices, Microsoft is both gaining a competitive edge over rival Sony and ensuring consumers that they need not worry about the price increasing if they decide to purchase the console now.
The Cost of Production
While inflation has undoubtedly impacted the production price of Xbox systems, Microsoft has not made any significant change. With components and labour costs increasing across the globe, it is surprising that they are yet to make a move, especially when Sony has already done so.
Why Microsoft is Sticking to Its Guns
There are a few reasons for this. A significant reason is the consumer. With the ongoing economic turmoil, households are increasingly looking to keep costs down. Microsoft, it seems, is taking this into account by not increasing prices. Additionally, Microsoft has already made vast profits, particularly off Xbox Game Pass, which will surely keep things running for some time. Despite the pressure to increase prices due to global inflation, Microsoft is willing to stick to its guns.
Impact on Rivals
Microsoft’s firm stance on prices increases the pressure for Sony to either stick to their guns or revert to the original pricing. If they stay their current course, it could lead to fewer sales and substantial losses among consumers who have a tighter budget still needing gaming consoles. It may even cause some consumers to switch to Microsoft. However, this pressure may be part of the reason why Sony increased the price in the first place
Conclusion
While many predicted that Xbox prices would inevitably increase due to an unstable global economy, Microsoft has yet to show any sign of doing so. They have committed to keeping the prices of both consoles at a competitive level, ensuring that they can attain greater sales than their rivals. The strategy Microsoft has employed is, therefore, an excellent one for the end-user.
FAQs
Will Xbox prices increase globally?
No, the price is staying the same in the US, UK, and Europe for both the Xbox Series X and S consoles.
Is Microsoft trying to gain an edge over its rivals?
It is evident that by not increasing prices, Microsoft is trying to gain a competitive edge over rival Sony. It is a better strategy for the end-user.
Is global inflation affecting Xbox production prices?
Yes, global inflation is undoubtedly affecting production prices.
What does this mean for Sony?
Sony may feel pressure to revert to their original pricing to avoid fewer sales and consumer losses. It might even cause some consumers to switch to Microsoft.
Is this good or bad for the consumer?
Microsoft’s commitment to not increasing prices ensures that consumers don’t have to confront any additional costs during an unstable economy. So, it is good for the consumer.