$1K Xbox Launch Price Could Cut Sales by Up to 38%

Microsoft is developing its next-generation Xbox console, codenamed Project Helix. The new console will have the capability to play both Xbox and PC games, making it more powerful and flexible than current models.

Ampere Analysis estimates that if the next Xbox and Sony's PlayStation 6 launch around $1,000, their combined sales during the first five years could be as much as 38% below the current generation. This is a concern for Microsoft because console hardware only represents the beginning of the relationship between the company and its customers.

Microsoft also generates revenue through game sales, subscriptions to Game Pass, and in-game purchases within the Xbox ecosystem. Fewer consoles sold means fewer potential customers for these businesses.