Microsoft might be losing hundreds of dollars on every Xbox sold

Consoles usually become cheaper over time as the prices of the components they use decrease. However, the opposite is happening with Xbox: according to a report by Windows Central, Microsoft is losing money on it and, despite price increases, is still not out of the red. We summarize what we know about the problem so far.

How much is Microsoft losing on Xbox?

Selling consoles at a loss is nothing new – hardware manufacturers often subsidize and make money on games and subscriptions. Already in 2022, then-Xbox head Phil Spencer stated that Microsoft was losing 100 to 200 dollars (approximately 2,300 to 4,600 CZK) on each unit. According to Windows Central, the loss today is significantly higher, amounting to hundreds of dollars per console. However, Microsoft has not officially confirmed the exact amount.

Why consoles are getting more expensive, and it still doesn’t pay off

The deterioration is mainly due to the prices of RAM and storage. According to the same source, Xbox CEO Asha Sharma stated that component costs have risen by about 50% since she took office, and expects the crisis driven by demand for AI chips to continue. Import tariffs also play a role. Therefore, Microsoft raised console prices twice in 2025.

Alza currently sells the Xbox Series X for 17,690 CZK, and the cheaper Series S variant for 9,990 CZK.

What Microsoft plans to do about it

Asha Sharma, who has been leading the gaming division since February 2026, does not hide the seriousness of the situation. Besides hardware, she is betting on the Game Pass subscription, for which she lowered the price of the highest tier after a previous price increase and subscriber outflow. According to Windows Central, she is considering a cheaper cloud-focused console in the future, which would do without an expensive SSD, as well as closer cooperation with hardware manufacturers to mitigate the impact of tariffs.

Will Microsoft keep Xbox from losing money, or will consoles get more expensive again soon?

Sources: Windows Central, Notebookcheck