Xbox Boss Phil Spencer Reveals Microsoft Loses Between $100-$200 On Every Xbox It Sells

Video game consoles are very expensive pieces of computer hardware put into relatively small boxes and packaged with pricey controllers, so it’s not a shocking revelation by Microsoft head of gaming Phil Spencer that they are losing up to $200 for every console sold.

In a recent interview he spoke about how video games and the Xbox brand in specific are doing during the ongoing economic downturn. Microsoft loses around $100 every time it sells the $500 Xbox Series X and loses even more, up to $200, whenever it sells the smaller, $300 Xbox Series S. But the company recoups the losses by selling accessories and subscriptions.