Will PS5 and Xbox Series X be Sold at a Loss?

Gaming is big business, and although customers have always had deep pockets when it comes to forking out for the latest system, this industry has taken a bit of a nose dive in recent months. According to the tech industry, both the PS5 and XBox series X are not likely to achieve the “money no object” status of earlier models, and there are rumours that both may be sold at a loss.

In a way, the industry has itself to blame. Yes, plenty of adults play on video games systems, but they are also popular with kids. In this time of economic uncertainty, replacing an old gaming system for the latest bright and shiny new model is not a smart move. Who can even afford it when living costs are rising, and future unemployment looks so likely?

So far, new prices have not been revealed, which is a bad sign for people trying to pre order. Both systems are likely to come in at around $499 but may offer paid extras that will inflate the cost dramatically.

At the moment, it is a weird stand-off between Sony and Microsoft. Neither company seems to want to commit to revealing a price, because both know that once one company does this, the other will respond with a lower price.

The upcoming PS5 console has certainly had its share of highs and lows. Recently, it was on pre order sale from a Canadian company who were offering it for just $397 (CAD $559). By contrast, a Danish retailer said that they would be selling it in excess of $1000. Of course, there are some hardened Sony fans who will pay whatever it takes to get the new console, but paying over $1,000 for a game console is just out of reach to many loyal customers.

According to Microsoft, it is already hinted that the XBox Series X will be sold at a loss, and although it seems likely to cost $499, Microsoft will not be seeing a profit on their latest game console.

There is method in their madness. According to Phil Spencer, the current vice president of gaming at Microsoft, the company makes most of their profits on games rather than the consoles ,so it does make business sense to ensure that people buy the console, because Microsoft knows the games will follow.

At present, the PS5 and X Box X  are locked in a price war. Sony with the PS5 is already leading in the popularity stakes, because their gaming systems are more popular worldwide. It is possible that Sony will also reduce the price to around $399, and if they can come in at $100 cheaper than the XBox X, they will win this price war.

In our opinion, both the PS5 and Xbox series X are beginning to look decidedly overpriced. There is a move away from gaming consoles as more people take to their mobile phones, so if you do want one of the latest models, the best advice is to hang on and see if you can bag a bargain sometime next year.