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Phil Spencer on Price Increases: “We hold on as long as we can”

Draugoth

Gold Member
phil_spencer_series_s__ban64o-1210x544.jpg

Visiting Brazil for CCXP 2023, where Xbox hosts a huge space dedicated to fans, Spencer spoke with Flow Games about these and other challenges that permeate being one of the giants of the “iron trio” of the video game industry, one of them being the decision to increase princes (in this case it was about the Series S price in Brazil)

Xbox Series S price increase in Brazil: what Phil Spencer told Flow Games:

Yes. I'll start by acknowledging that price increases are never a positive thing. It's not something we like, we want to make the price as affordable as possible, which is why we held off as long as we could two years after launch, to make it viable for consumers who wanted a Series S. You know this because you're in this market: launching products in it, with the taxes and everything, is very, very challenging.

And even with the price we have now, after the increase, this is, for us, in terms of what we can see from the sales of the Series S [in Brazil], probably the lowest margin in the world from what we get, from the revenue we can get. For me, the most important thing is that pricing happens in a way that makes us viable here in the long term. I need to make sure that my commitment to the consumers here is to run a good business. That's also one of the reasons why we focus on multiple ways for people to play Xbox. People buying a console: I think that's great, we want to be here in a way that makes sense for our business. And we're also on PC, in the cloud, to give people multiple choices in how they engage with us.

When is the Activision Blizzard titles coming to Game Pass?

I don't have an answer yet, sorry. We have to work with the teams involved, there are a few things that need to be sorted out. But obviously Game Pass is part of our strategy, and Activision Blizzard is an important element of that," he summed up.
 

jroc74

Phone reception is more important to me than human rights
So...that cheap Series S was selling at a loss. So much so that they had to do a huge increase in Brazil just to make a profit on it?

Shieeeeet.

"And even with the price we have now, after the increase, this is, for us, in terms of what we can see from the sales of the Series S [in Brazil], probably the lowest margin in the world from what we get, from the revenue we can get."

Since margins have been a hot topic lately....
 

AJUMP23

Parody of actual AJUMP23
I am glad this gen got set at 500 before inflation really kicked in.

next gen is going to be 700 for early entry.
 

Elysium44

Banned
Can't happen. 700 dollar consoles. I think they pushed it to the limit this gen. People can't afford that.

In inflation-adjusted terms the PS1 released at $600, PS2 at $535, PS3 at $760 (20GB) / $915 (60GB), PS4 at $527. Current-gen prices are totally in step with previous gens, if not cheaper.

By the time the next gen rolls around, $700 nominal is perfectly possible.
 

onQ123

Member
I refuse to believe that the trillion dollar company "held on as long as they can" when the PS5 is cheaper than a Series S. Absolute madness if anybody believes this.
PS5 sell enough that they can get the parts in higher quantities to bring the price down but Xbox Series X/S is paying a high price for the almost off the shelf SSD in them that hardly anyone else is using.
 

Ozzie666

Member
PS5 sell enough that they can get the parts in higher quantities to bring the price down but Xbox Series X/S is paying a high price for the almost off the shelf SSD in them that hardly anyone else is using.

Maybe Microsoft should start looking into buying Nvdia and some of the hardware manufacturers. Get in on the ground floor.
 

adamsapple

Or is it just one of Phil's balls in my throat?
I refuse to believe that the trillion dollar company "held on as long as they can" when the PS5 is cheaper than a Series S. Absolute madness if anybody believes this.

It isn't though.
 
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