Why Xbox Series X Is Priced So Aggressively

Microsoft recently announced the prices of the Xbox Series S ($300) and Xbox Series X ($500), and they came in lower than some might have imagined, especially the lower-spec S model. The consoles were intentionally priced low, and Microsoft is launching the phone-style subscription plan, to make it easier to get people into the Xbox ecosystem and then start spending money on games, according to Xbox CFO Tim Stuart.

Stuart told Barron's that the aggressive pricing for the Series S/X consoles will help Microsoft "kick-start" the new generation.

"Our goal was to increase that top-of-funnel as fast as possible, get people into the ecosystem, get people into that next-gen experience, and frankly kind of kick-start this generation as fast as we can," Stuart said. "If you can get that install base as big as you can up front, you have customers enjoying the next-gen experiences we have to offer. And from a business side, we start to monetize and build a customer lifetime value much faster than a slow build over time."

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