We are still fairly new to the latest-generation console cycle. The PlayStation 5 and Xbox Series X/S console platforms launched during the pandemic. That made things incredibly difficult for consumers as you had shipping issues, limited stock, and resellers buying up all available stock. Fortunately, those days are behind us, and now getting these consoles is relatively easy. But if you think that we are getting any price drops for the Xbox Series X/S as time goes on, think again.
Gamescom kicked off this week, allowing consumers to check out some of the most anticipated video games in the marketplace. Eurogamer spoke with Phil Spencer, who was present at Gamescom, offering more insight into the future of Xbox and the great games that were landing on the platform. During their conversation, the topic of Xbox Series X/S consoles dropping in price as the component prices also begin to drop. But according to Phil Spencer, that’s not going to happen, and it was clear this was going to be the case before bringing the latest-generation platform into the market.
Phil noted that the Xbox team didn’t see prices coming down but was aware of how important these prices would be. Thinking of newcomers to the video game scene and families, Phil said the team needed an answer for a price-effective console. As a result, they brought out a sub-$300 console with the Xbox Series S. This console would be their answer to providing a next-generation gaming experience while keeping costs down.
For us, thinking about where our hardware is going and reaching more customers, price point is important. But you’re not going to be able to start with a console that’s $500 thinking it’s gonna get to 200 bucks. That won’t happen. Because the core components that you use – you’re used to Moore’s Law shooting up and to the right – but your components… you can’t buy them anymore as a hardware maker because nobody’s making that kind of RAM or other components. It’s not the way it used to be where you could take a spec and then ride it out over 10 years and ride the price points down. It’s why you see console pricing relatively flat.
Phil Spencer – Eurogamer
Going a bit further, Phil also stated that they didn’t want to add any more complexity into the marketplace with a mid-gen refresh. There are already two specs in the marketplace from the Xbox team. Likewise, you also run into the problem of some manufacturers not actively making certain components as years go by. So, it would seem dropping the price wouldn’t make much sense as getting these components might not be as accessible.
Of course, only time will tell if Microsoft keeps the same views and doesn’t provide a price drop. Meanwhile, there has been some calling out Microsoft for creating some disparity for the Xbox Series X/S platforms.
