With the upcoming super consoles, will Microsoft lose money with their Xbox Series X by competing with Sony’s PS5 pricing?
Will Microsoft Lose Money With Their Xbox Series X
Microsoft’s slide presentation held virtually last night proves that its Xbox Series X may cost between $500 and $600 mainly due to the chip developed by the Taiwan Semiconductor Manufacturing Company or TSMC.
The chip Microsoft was referring to is the enhanced 7 nanometers (nm) technology chip, which Microsoft already confirmed to be more expensive than the 16nm chip used in the Xbox One X. Why? First and foremost, it out-paces chips inside the Xbox One & One X, but it’s mainly due to the chip’s die. The chip die can’t be shrunk any more than it already is. In fact, (As per Jeff Andrews, Xbox Architect) the die in the Series X chip is the same size as the die in the One X chip. So any chance of shrinking the die in order to make the chip less expensive gets thrown out the window.
In order to accommodate the TSMC 7nm chip, AMD and Microsoft had to make some significant changes to the Series X overall system. This included CPU Cores, Memory, Accelerators, Etc…
The GPU diagram below, shows how well the RDNA 2 GPU work with the Xbox Series X console:
Based on their investment on their new super console, do you believe Microsoft could lose money on the Xbox Series X by competitively pricing it to the upcoming PS5?