According to current rumors and innuendo, the leaked Xbox Series S may end up being half the price of the Xbox Series X. A member of the Beyond3D forums, eastman, who has proven access to Xbox insider information, revealed that the Xbox Series S will be half the price of the Xbox Series X and will be a smaller form factor all-digital console. While no final decision on pricing has been made, it is expected that Microsoft will announce the Xbox Series X for around $400, putting the Xbox Series S at a very affordable $200 or so.
Last I heard it be half the price of the XSX and last i heard MS were prepared for a $400 XSX. I am not sure what the final price will be. I think if Sony is $500/$600 MS may try to go in at $200/$400/$500 but we will see.
Most consoles sell at a loss during the first couple of years of their life cycle as components are more expensive; they eventually make a profit as the console is more mass produced and components lower in price. Companies then make up the loss through software sales as well as things like Xbox Game Pass and Xbox Live.
MS will make up any losses they take by getting a higher cut of game sales and more subscriptions. Pricing also depends on what Sony does. MS doesn’t have to go as extreme in pricing if sony prices itself higher.
Eastman also discussed the upcoming July event and stated it will be when both the Xbox Series X & S prices will be revealed and Microsoft want it to be a “”night of mic drops”
But from what I”ve heard from all my sources July isn’t about Sony , July is about the industry and they want it to be a night of mic drops . They are going to come hard with the strategy they have been building up to for years and they want google , amazon , apple , sony and yes Nintendo to shaken up . So expect a series of Mic drop moments followed by the price being the key part of all this.
He then went on talk about how Microsoft want to become what Netflix was a few years ago, where Netflix snapped up a lot of top content to put exclusively on its platform. Microsoft are looking to do this and want to push the streaming aspect of gaming, much like the recently released Stadia. A cheaper and smaller console will allow them to get into a lot more homes and be able to push this new technology and direction for gaming.
That’s why I think Lockheart is a key device in their strategy. Its low cost gateway that they can control to make sure the hardware can handle their new compression techniques they will employee with xcloud over the next few years. The plan for Lockheart is to get into price categories they were never able to hit before and I believe based on listening between the lines that they expect lockheart to at some point make it down to fire tv size . Also the size of the first lockheart will surprise everyone.
While Eastman is a reliable source, all rumors have to be taken with a grain of salt, and we can’t know for certain if this is reliable information until July’s event. But with Xbox’s fairly disappointing show in May and Sony nailing theirs last week, Microsoft really need to pull it out of the bag next month in order to stand any chance of not failing this generation.
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