Tag: Windows Central

  • Microsoft Loses Hundreds Per Xbox Console Sold Despite Price Hikes

    Microsoft Loses Hundreds Per Xbox Console Sold Despite Price Hikes

    Key Takeaway

    – Xbox is losing hundreds of dollars per console sold due to memory shortages and 50% higher component costs.
    – First-party games underperformed and Game Pass price hikes caused subscriber losses, forcing a “reset” of the business.
    – Unlike typical console cycles, manufacturing costs are rising instead of falling, making hardware sales a financial liability.
    – Asha Sharma plans to mitigate losses with cloud-focused hardware revisions (Project Helix) and OEM partnerships by 2027.
    – Microsoft is in a more vulnerable position than Sony and Nintendo due to its inability to secure fixed-price memory for healthy margins.

    Cloudy Horizons for Xbox’s Bottom Line

    In a new Windows Central article, Jez Corden paints a bleak picture for Microsofts gaming investments. Adding to the problems, the memory shortage is an obstacle as it loses “hundreds of dollars per Xbox Series X|S console sold.” Multiple price increases haven’t prevented the damage, complicating any initiative to boost lagging hardware sells.

    Resetting the Business After Missed Targets

    CEO Asha Sharma has admitted that Xbox is “not in a healthy spot,” prompting the need to “reset the business.” Jez Corden highlights how many first-party games did not meet expectations. Before the recent cuts, the Game Pass rate hikes also caused subscribers to flee.

    Microsoft, Sony, and Nintendo have used software and services to mitigate losses from console sales. However, the storage and memory shortages are dramatically worsening manufacturing burdens. Sharma explained that component costs have risen by 50% since she became CEO and expects the AI-fueled crisis to continue.

    Vulnerable Position Compared to Rivals

    While Sony and Nintendo face the same challenges, Corden believes Microsoft is in a more vulnerable position. He claims that “Xbox struggled to secure anywhere near enough memory with fixed prices necessary to keep its hardware margins healthy.” Without subsidizing Xbox consoles, selling more units could actually prove detrimental.

    Price Hikes and Lost Subsidies

    Even in 2022, Sharma’s predecessor, Phil Spencer, revealed that the company was losing $100-$200 per Xbox console sale. At the time, the Series X cost $499 with the Series S at $299. Spencer said there were no plans for Xbox price increases, but that was before tariffs and dwindling component supplies. The Series X now demands $649.99, with the Series S carrying a $400-450 MSRP.

    • Typically, when a system launches, manufacturers are willing to take a financial hit in order to accelerate adoption.
    • Over the years, the cost of parts falls, and the assembly process becomes streamlined.
    • In this generation, the opposite has happened, with the PS5 also becoming more expensive to produce.

    Project Helix and Cloud-Focused Futures

    With the Project Helix arriving as soon as 2027, Sharma aims to use innovation to navigate these economic realities. Recently, she hinted that future hardware revisions could be cloud gaming-focused, eliminating the need for large SSDs. Corden also suggests that Microsoft will rely on OEM partners to target specific regions, alleviating tariff penalties and optimizing distribution.

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  • Microsoft Pro and Surface Laptop Launch Delayed Rumors

    Microsoft Pro and Surface Laptop Launch Delayed Rumors

    Key Takeaway

    1. Microsoft’s Surface PC releases, including the Surface Laptop 8 and Surface Pro 12, have been delayed by approximately one month.
    2. All versions of the Surface Laptop 8 will be configurable with OLED displays.
    3. The new Surface Pro and Surface Laptop models are expected to be smaller and may see significant price increases, with some versions potentially costing 65% more than previous models.

    Latest Insights on Microsoft’s Surface PC Launches

    Roland Quandt recently give us new updates about Microsoft’s upcoming Surface device line-up. He shared some initial details about the Surface Laptop 8 and Surface Pro 12 last week. The tech world is waiting eagerly as these devices are expected to introduce some interesting features and improvements.

    Details on Display Options and Variants

    Windows Central added that all Surface Laptop 8 versions might feature OLED screens, which will be a big upgrade for sharpness and color vibrancy. They also hinted at smaller versions of Surface Pro and Surface Laptop, which could appeal to users who prefer more compact designs. The inclusion of both ARM and Intel chips means users might get a broader choice depending on their needs.

    Delay in Launch and Price Speculations

    According to Quandt, Microsoft is delaying the launch of its new Surface devices by around a month. He mentioned on Bluesky that the prices are ‘so bad’, but didn’t give any specific numbers. A Dutch retailer, however, suggests that the Surface Pro 12 might be up to 65% pricier than the older model, which was priced around $999 on Amazon. This means some versions could be quite expensive.

    Upcoming Models and Expected Release Timeline

    This delay probably affects the new Intel-powered Surface models codenamed Panther Lake, which might now release in July. Meanwhile, their Snapdragon X2 based counterparts are expected to arrive later, between July and September 2026. As of now, there are no official images or detailed promotional materials available for these devices yet, so all the information is based on leaks and rumors.

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