Xbox
The Microsoft / Activision affair is now a worldwide case that splits fans in two. On the one hand, there are those who rejoice over this deal that potentially makes Xbox much more attractive to gamers. On the other hand, there is the risk that the acquisition will turn into a blow to the competition, unable to provide alternatives to the level of games like Call of Duty. Just a few days ago, Jim Ryan, Sony's SEO, harshly attacked Phil Spencer who, in a recent interview, responded in kind.
In addition to Sony's competition, Microsoft must also guard against external competitors such as Tencent and Embracer Group. In fact, both companies have chosen to adopt the acquisition policy and try to annex as many studios as possible. In such a competitive market, therefore, Phil Spencer takes sides in defense of the strategy undertaken by Xbox. The example used by the CEO in an interview with Squawk Asia is precisely that of Tencent which, although already the largest video game company in the world, continues to make heavy investments.
$ MSFT 's @ XboxP3 talks #Tencent, #JRPG 's, and @discord - and explains why it's not time to follow $ SONY' s hike in prices. #Xbox #PlayStation pic.twitter.com/BCIY0wE8Gt
- Squawk Asia (@asiasquawkbox) September 16, 2022
Xbox Explains Why It's Not Raising Series X Prices
Xbox boss Phil Spencer has elaborated on why it has chosen to not raise prices on the Xbox Series X|S. Gaming is an exceptionally expensive hobby and it's arguably one of the most expensive mainstream hobbies there is. Most major games cost a minimum of $59.99 and some are even charging $69.99 now due to the rising costs in game development. Consoles costs hundreds of dollars, hardware can cost just under $100 or more depending on its quality, and if you want to play online and get other benefits, you'll need a subscription that costs dozens of dollars. It's pricy and it's not getting any cheaper. In some regions, Sony has increased the price of the PlayStation 5 due to inflation, making the barrier to entry even more difficult.
Xbox quickly came out to state that it won't be doing the same on its current-gen consoles, leaving Sony as an outlier in this move. Speaking to CNBC, Head of Xbox Phil Spencer was asked if that remained true and he reaffimed the decision. Although Spencer can't rule out the chance that it does happen in the future due to economic uncertainties, there are no plans to increase the price. Spencer noted that the value of the consoles are important and that the low entry cost of the Xbox Series S has been both incredibly beneficial to Microsoft and the players.
'We're always evaluating our business going forward,' said Spencer. 'I don't think we can ever say on anything that we will never do something. But when we look at our consoles today, [...] Series X and Series S, we think value is incredibly important. We love the position of Series S in the market, which is our lower cost console. Over half of our new players that we're finding are coming in through Series S. And I can definitely say we have no plans today to raise the prices of our consoles [...] we don't think it's the right move for us at this point to be raising prices on our console.'
Of course, things can change at any given moment, but it's clear the pricing is crucial to Xbox. Given Xbox Series S offers an entry to the new generation of consoles at nearly half the price of the Xbox Series X and PlayStation 5, it would be damaging to increase the price. A s of right now though, it doesn't seem like there's any indication that Xbox will increase prices.
Has Sony's move to increase prices in select regions impacted what console you may buy? Let me know in the comments or hit me up on Twitter @Cade_Onder.
[H/T Kotaku]