Bernoulli
M2 slut
In internal emails, Microsoft was also quick to react to Sony’s PS5 price increase last year — despite not hiking Xbox prices immediately. Xbox CFO Tim Stuart emailed Xbox chief Spencer and Microsoft CFO Amy Hood early in the morning of Sony’s announcement in 2022, noting that the Xbox team had “anticipated this and are moving quickly toward a plan now that we’ve seen confirmation.”
There’s a discussion in the email chain, which is heavily redacted, but it appears that Spencer wants the company to remain gamer-focused with any price increases. Ami Silverman, who at the time was head of Microsoft’s consumer sales and marketing, responds with “all good points, let’s be gamer obsessed here as we have not gotten out of the woods... we know this could be our time to win fans vs lose being a follower.”
Silverman is clearly referring to Xbox sales being behind PlayStation ones and not wanting to lose any momentum by immediately following Sony’s price hike with Microsoft’s own increase in Xbox prices. Microsoft repeatedly mentioned losing the console wars and being in a distant third place during the FTC v. Microsoft hearing.
Spencer then explains he purchased a PS5 in August 2022. “Sony has been force bundling HZD for $50 [additional] for awhile now,” said Spencer. “I bought my PS5 2 weeks ago and only option was HZD bundle at $549.” HZD incorrectly refers to Horizon Zero Dawn here, as it was Horizon Forbidden West that Sony bundled with the PS5.
The back and forth might explain why Microsoft held off on an Xbox Series X price increase for nearly a year. Microsoft increased its Xbox Series X prices in most countries in August, apart from the US, Japan, Chile, Brazil, and Colombia. The updated Xbox Series X console pricing largely matches the price hike Sony announced for the PS5 in 2022
There’s a discussion in the email chain, which is heavily redacted, but it appears that Spencer wants the company to remain gamer-focused with any price increases. Ami Silverman, who at the time was head of Microsoft’s consumer sales and marketing, responds with “all good points, let’s be gamer obsessed here as we have not gotten out of the woods... we know this could be our time to win fans vs lose being a follower.”
Silverman is clearly referring to Xbox sales being behind PlayStation ones and not wanting to lose any momentum by immediately following Sony’s price hike with Microsoft’s own increase in Xbox prices. Microsoft repeatedly mentioned losing the console wars and being in a distant third place during the FTC v. Microsoft hearing.
Spencer then explains he purchased a PS5 in August 2022. “Sony has been force bundling HZD for $50 [additional] for awhile now,” said Spencer. “I bought my PS5 2 weeks ago and only option was HZD bundle at $549.” HZD incorrectly refers to Horizon Zero Dawn here, as it was Horizon Forbidden West that Sony bundled with the PS5.
The back and forth might explain why Microsoft held off on an Xbox Series X price increase for nearly a year. Microsoft increased its Xbox Series X prices in most countries in August, apart from the US, Japan, Chile, Brazil, and Colombia. The updated Xbox Series X console pricing largely matches the price hike Sony announced for the PS5 in 2022
This is how Microsoft reacted to Sony’s PS5 announcement and price hike
A rare insight into Xbox and PlayStation competition.
www.theverge.com