Xbox Series X and S sold at an ‘aggressive price’: Microsoft explains its strategy

During an interview granted to the editorial staff of the American financial magazine Barron’s, the CFO of Microsoft’s Xbox division, Tim Stuart, illustrated the commercial strategy decided by the Redmond company to launch on the market “at an aggressive price” Xbox Series X and S.

The Microsoft executive he begins by stating that “Our main goal was to create a large installed base as quickly as possible, we wanted to bring people into our ecosystem and involve them in our nextgen experience. Frankly, our intention was to kickstart this generation in the best possible way. fast”.

Behind the strategy pursued by the Redmond company there is therefore the will, as it seems logic (not to say obvious), to place as many consoles as possible and ensure an economic return in the medium to long term by selling games and services such as Xbox Game Pass. In this regard, Stuart points out how “If you can anticipate the creation of a large installed base, you will have many more customers who can access the next generation experiences we have to offer. From a business point of view, only by increasing the value of the offer we reserve for our users we can build the ecosystem faster and generate a profit “.

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The CFO of Xbox concludes his speech by revealing that “Our currency is the commitment and enjoyment of users in our ecosystem. If users play games, buy more games from our partners, and if they buy more games then their enjoyment increases.”.

Xbox Series X and S will be released on November 10 and will be available for the price of 499 and 299 euros, with pre-orders open from September 22. According to analyst Benji-Sales, the Xbox Series X and S will be sold at a loss, i.e. at an introductory price lower than that requested from Microsoft for the production and distribution of both nextgen systems.


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