PS5 and Xbox Series X Price Dilemma – How Expensive They Can Afford To Be?

PS5 and Xbox Series X Price Dilemma - How Expensive They Can Afford To Be?

Sony and Microsoft have both traditionally sold hardware at a loss, making up for the revenue via software and accessory sales (and, over the last decade, network revenues from services such as PSN or Xbox Live).

The PS4 and Xbox One were a step away from that strategy, after its abject failure with the PS3 (which, even at a $599 price tag, allegedly lost hundreds of dollars per unit sold), and the success of the Wii (which took existing, cheap hardware in an appealing package, and sold it for profit). But as we’ve discussed already, that appears to have been an aberration more than the start of a new trend, and the PS5 and Xbox Series X both seem to have a very high cost of manufacturing. So what are the options that Sony and Microsoft have?

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