Sony turned a few heads when it unexpectedly raised prices on the PlayStation 5 in the second year of the current generation of consoles. Naturally, many wondered if the same difficult economic situations we all encounter would affect Xbox prices as well. However, Phil Spencer, the company's head of Xbox, stated that increasing the price of the Xbox Series line would not be a wise move right now. Despite the Activision Blizzard bid, Microsoft has no intentions to cut investments in video studios.
Phil Spencer appeared on CNBC to discuss Microsoft's desire to acquire more companies, its perception of the Japanese video game market, and whether or not Xbox would increase its prices. Spencer chose instead to highlight the more budget-conscious Series S, while also stating that the company does not intend to raise its prices.
Spencer said that while this is a more explicit acknowledgment that we shouldnt expect price increases in the near future, the company cannot rule out the possibility of a price change.
Were always looking ahead to what we would do. [...] Series X and Series S, we think value is incredibly important. We love the market position of Series S, which is our lower cost console. Over half of our new players are coming into the company through Series S. And I can certainly say we do not intend to raise [the prices] of our consoles at this point.
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Phil Spencer stated that because of the competitive nature of the video game industry, the company does not have to put a pause on anything, laying out the size of its competitors, such as Sony and Tencent. The recent Activision acquisition has certainly ruffled some feathers between Xbox and PlayStation, particularly regarding Call of Duty's multiplatform status.
Tencent is the world's largest gaming company today, and they continue to invest heavily in gaming content and game creators. When you look at the investments that weve made, its a highly, highly competitive market. [...] whether it's investing in our internal teams [...] [or] building new partnerships.
Spencer touched on Xbox's desire to expand in Japanese markets, where it has historically struggled. He highlighted the company's recent partnership with Kojima Productions to develop an ambitious, upcoming game.