Sony turned a few heads when it was unexpected increased prices on the PlayStation 5 in the second year of the current generation of consoles. Of course, many have asked themselves whether this is also the case complicated economic situations we all find each other in would see an increase in Xbox prices also. However, in a recent interview with CNBC, Xbox head Phil Spencer stated that raising the price of the Xbox Series line would not be a wise move for the company right now. He also stated that despite Activision Blizzard’s offer, Microsoft has no plans to slow investment in game studios.
While in Japan for the Tokyo Game Show, Phil Spencer appeared on CNBC to talk about Microsoft’s potential interest in acquiring more companies, how the Japanese video game market is faring, and whether or not Xbox will follow PlayStation with a price increase. Spencer came close to “categorically” denying that Xbox would raise its prices, opting instead to highlight the success of the more price-conscious Series S and stressing that the company “keeps customers more economically challenged and insecure than ever.” . currently has no price increases.
While this is a more direct confirmation that we shouldn’t expect price increases anytime soon, Spencer said the company can’t completely rule out the possibility of a price change “in the future.”
We are constantly evaluating our business in the future. I don’t think we can ever say we’ll never do anything. But if we look at our consoles today, […] Series X and Series S, we think value is incredibly important. We love the Series S’ position in the market, which is our lower-cost console. Over half of our new players that we find come through the S series. And I can definitely say that we’re not planning any raises today [the prices] our consoles […] We don’t think increasing the price of our console is the right move for us at this time.
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The topic of console pricing followed a conversation about acquisitions, as Phil Spencer explained that the competitive nature of the video game market means the company “doesn’t have to pause on anything,” detailing the size of its rivals, such as Sony and Tencent. Activision’s recent acquisition certainly did ruffled some feathers
Tencent is now the largest gaming company in the world and continues to invest heavily in gaming content and game developers. Sony is a bigger gaming company than we are today and they keep investing. If you look at the investments we’ve made, it’s a very competitive market. We strive to be a major player here. […] whether that invests in our internal teams […] [or] Building new partnerships.
Spencer also touched on Xbox’s ambitions to expand into Japanese markets, where it has struggled in the past. He highlighted plans to build relationships with existing Japanese developers, similar to the company’s recent ones Partnership with Kojima Productions to bring an ambitious upcoming title to Xbox.