Microsoft is incurring substantial losses on the sale of Xbox Series gaming consoles, with reports from Windows Central indicating a deficit of hundreds of dollars per unit. This refers to losses of at least $200 or more for each console, a significant amount given the retail price, even after recent price increases.
Interestingly, while the new head of Xbox, Ash Sharma, recently stated that memory for Xbox consoles would be five times more expensive by the holiday season of 2027 compared to autumn 2025 prices, Windows Central now reports that Sharma herself has mentioned a 700% price increase for memory already occurring.
Regardless of these specifics, Microsoft finds itself in a position where, years after their launch, these consoles continue to be unprofitable on their own.
Consequently, the overall profit margin for the entire Xbox division has decreased to 3%. Furthermore, numerous major game releases, including Avowed, Keeper, Kiln, South of Midnight, Hellblade 2, Forza Motorsport, and The Outer Worlds 2, have failed to meet the company’s expectations.
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