Xbox Is Reportedly Losing $150 on Every Series X|S Console Sold
Microsoft has raised the prices of its Xbox Series X|S consoles several times during the current generation, but a new report claims the company is still losing money on every unit it sells.
According to Windows Central journalist and insider Jez Corden, Microsoft is currently losing around $150 for every Xbox Series X|S console sold, even after the latest price increase.
He says the main reason is the rise in memory (RAM) costs, which have made gaming hardware much more expensive to produce.
Rising RAM Costs Mean Xbox Is Losing $150 on Every Console
Corden explains that in 2026, the cost of electronic components has made consumer technology less affordable than ever. While the PC gaming market has been heavily affected, consoles have also been hit by the same problem.
The situation is expected to become even more noticeable as Nintendo Switch 2 also prepares for a price increase in September, although Sony and Microsoft have been dealing with higher hardware costs for much longer.
While discussing Xbox Project Helix, which is expected to be part of Microsoft’s next-generation console plans, Corden said the so-called “RAMpocalypse” has pushed Microsoft’s hardware profit margins to extremely low levels.
He said, “If Xbox Helix is indeed an “open” PC, Xbox would have no choice but to price it like an “open” PC. The Xbox Ally also costs $999.99 because ASUS cannot make their money back on the software sales, given that they have no real distribution platform of their own.”
“Thanks to the RAMpocalypse, those wafer thin margins get even trickier. I’ve been told Xbox is losing around $150~ per Xbox Series X|S sold right now even after the planned August 2026 price hike. Now imagine 50% or more of those Xbox Series X|S users bypassed the Xbox ecosystem and went straight to Steam to buy games. The margins would be even worse. You wouldn’t have a business at all,” he added.
According to his sources, Xbox is losing about $150 on every Series X|S console because of rising memory prices. He believes the financial pressure could increase further, even after Microsoft’s recent hardware price hikes.
In related news, Xbox consoles represent 80% of Microsoft’s gaming business as CEO says the company spread itself too thin amid Xbox’s major reset.
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Woah! According to my calculations this means they’ve lost a total of $0 in the past year alone!!