Xbox CEO Gives A Good Explanation For Why A Console Now Costs $800
Forbes • • technology
Key Points:
- Xbox CEO Asha Sharma revealed a severe hardware component crisis, with prices for console storage components increasing over 500% in two years, driven largely by AI technology demands.
- This surge in component costs has led to significant price hikes for consoles, exemplified by the $800 Xbox Series X and $900 PS5 Pro, with even Nintendo starting to raise prices.
- Xbox is particularly impacted due to strategic choices over the past five years, raising concerns about the viability of its hardware business amid these soaring costs.
- Despite claims of demand outstripping supply, Xbox Series production is likely constrained by these cost challenges, causing the generation to approach stagnation.
- The upcoming Xbox Helix, a PC-console hybrid, faces questions about affordability, potentially costing over $1000, which may limit its market appeal beyond niche consumers.