Phil Spencer Rejects Expectations of Declining Console Prices
- Aug 25, 2023
In previous console generations, it was quite common for prices to decrease significantly after a few years, allowing gamers to buy Xbox One or PlayStation 4 at less than 50% of their launch price.
While some discounts on PlayStation 5 are available in several European regions, considerably fewer price reductions have been noted for the recent console generation, which is often out of stock in stores.
Xbox Chief, Phil Spencer, informs Eurogamer not to anticipate significant price drop of consoles anytime in the future.
"The prices aren't decreasing. We realize it now, and it led us to create the Xbox Series S," Spencer adds, "When thinking about the future of our hardware and reaching more customers, price points are crucial. But you can't buy a console for $500 and think it will eventually cost $200. It's just not going to happen. Because core components used cannot be purchased by hardware makers as they are no longer produced. It's different from the past where you could purchase a spec, keep it for about 10 years and enjoy declining price points, which explains why console pricing is generally stable."
Microsoft and Sony, due to inflating prices and high component demand, have decided to raise the recommended retail price for their respective consoles, Xbox Series X and PlayStation 5, since launching in November 2020.