Microsoft Plans to Make Profit From Game Pass and Accessory Sales Despite the Subsidized Xbox Console Prices

In recent years, many companies had to increase their product prices because of supply and logistic issues, which have worsened due to the pandemic. Recently, Xbox also revealed its master plan to deal with the losses they are also facing due to these issues.

The video game company is also one of the industries left crippled after the global pandemic. So, the companies are trying their best to get back on their feet. Now giant companies like Sony have increased the prices of their latest consoles to deal with the situation. Even Xbox has similar plans, but they have something else in mind for now.

Xbox would recover losses from Game Pass and accessories

It’s hard to find a PlayStation on shelves these days. If someone does, the prices will make you think twice. As mentioned before, the vast demand and multiple issues forced Sony to raise the costs of their consoles. Meanwhile, Microsoft sells its latest consoles at a subsidized price and can meet the demands.

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However, many raised questions about how long Microsoft would be able to sell consoles at subsidized prices. The Xbox CEO Phil Spencer also addressed this question recently, claiming, “I do think at some point we’ll have to raise the prices on certain things, but going into this holiday, we thought it was important to maintain the prices.“

So it seems the American giants have found their way to make a profit while keeping the console prices low. Microsoft plans to recover the money they lose on consoles from selling Game Pass, games, and other accessories. After all, reports suggest that Xbox makes 15 percent of its total profit from Game Pass sales alone.

What are the prices of Series X/S Consoles and Game Pass?

Microsoft is currently selling its most advanced console Xbox Series X at a price tag of $500, while the lower-end console Xbox Series S at just $300. Meanwhile, the Xbox Game Pass costs $10 to $15 per month for free access to a plethora of games, including some AAA titles. Xbox fans can also buy games individually, which range from $40 to $70.

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Undoubtedly, Microsoft offers the best prices on consoles and subscriptions at the moment. So, it would be interesting to see what would happen if they also raised the costs of their products.