Sony suddenly turned its head prices go up on PlayStation 5 in the second year of the current generation of consoles. Naturally, many people wonder if it’s the same complicated economic situation we all see ourselves in will see Xbox prices spike also. However, in a recent interview with CNBC, Phil Spencer, the head of the Xbox division, stated that raising the price of the Xbox Series line would not be a wise move for the company right now. He also explained that Microsoft has no plans to slow down its investment in game studios, despite Activision Blizzard’s bid.
While in Japan for the Tokyo Game Show, Phil Spencer appeared on CNBC to talk about Microsoft’s potential interest in acquiring more companies, how it sees itself in the Japanese video game market, and whether Xbox will closely follow PlayStation in raising prices. Spencer stopped short of “classifying” the denial that Xbox would raise prices, and instead chose to highlight the success of the more budget-conscious Series S, noting that while “customers are facing many challenges, more economically conscious and uncertain than ever,” the company currently has no plans to raise its price.
While this is a more direct admission that we shouldn’t expect prices to rise in the near future, Spencer said that “in the future,” the company cannot completely rule out the possibility of a price change.
We always evaluate our business going forward. I don’t think we can say anything that we’ll never do something. But when we look at our dashboards today, […] Series X and Series S, we think value is extremely important. We love the Series S’s position in the market, which is our lower-cost console. More than half of our new players we find will join through Series S. And I can certainly say that we have no plans today to raise the bar. [the prices] our dashboard […] We don’t think raising the price on our dashboard is the right move for us at this point.
The topic of console prices followed a conversation on acquisitions, as Phil Spencer stated that the competitive nature of the video game market means that the company doesn’t “get to press pause on anything,” laying out the size of its competitors, such as Sony and Tencent. The recent Activision acquisition has certainly ruffle some feathers between Xbox and PlayStationespecially regarding the future of Call of Dutyvariety status. Regarding the acquisition, Spencer said:
Tencent is the biggest game company on the planet today, and they continue to invest heavily in game content and game creators. Sony is a bigger business than we are in gaming today and they continue to invest. When you look at the investments we’ve made, it’s a highly competitive market. We try to be a big player here. […] whether it’s investing in our internal teams […] [or] Build new partnerships.
Spencer also mentioned Xbox’s ambitions to expand into the Japanese market, where it has historically struggled. He highlighted plans to build relationships with existing Japanese developers, similar to the company’s recent plan. cooperation with Kojima Productions to bring an ambitious, upcoming title to Xbox.