Xbox Series S Sells at Slightly Lower Price Than More Potent PS5 - Is Microsoft Content with this Price Difference?
In a surprising shift during its Days of Play event, Sony has reduced the prices of its PlayStation consoles by $50. This price cut has resulted in the base Series S being only $20 less than the PlayStation 5 Digital Edition, while the equivalent Series S 1TB is actually $30 more expensive. Consequently, one can buy a PlayStation 5 along with a 24-pack of Mountain Dew for less than the price of an Xbox Series S.
It remains unclear why Microsoft has allowed this pricing discrepancy to arise, given its substantial earnings. The temporary PlayStation sale comes just weeks after Microsoft increased its console prices due to the ongoing tariff war. The conflicting price adjustments make it tricky to discern the market trends.
Sony has actively promoted the Days of Play event, with advertisements featuring on Reddit and other social media platforms. In contrast, Microsoft's console sales have been relatively scarce, and its marketing efforts have been less intensive.
On May 1st, Microsoft announced a price hike for its consoles on a help page, citing market conditions and rising development costs as reasons. The new prices have since been challenged by PlayStation's latest pricing structure.
At the time of writing, Best Buy was out of stock for all Xbox Series X models. The impending launch of the Switch 2 next week will also intensify the competition against Nintendo.
In comparison to the PlayStation 5, the Xbox Series S (512GB) is priced at $379.99, the Xbox Series S (1TB) at $429.99, the Xbox Series X (1TB) at $599.99, the Xbox Series X (2TB) at $729.99, and the PlayStation 5 Pro (2TB) at $649.99.
It's worth noting that tariffs have mostly been paused but not yet returned to pre-2025 levels. This raises questions about Microsoft's decision to increase its console prices earlier. Sony, however, lowered its prices prior to any potential increase, as per its earnings report. Moreover, a U.S. judiciary panel recently ruled that Trump's tariffs were beyond the scope of the President's authority, potentially leading to the Supreme Court's intervention.
In light of these circumstances, Microsoft's strategy might undermine its biggest console ecosystem opportunity in years. The upcoming hype for the latest Grand Theft Auto trailer presents a missed opportunity to attract consumers towards the Series S as an accessible entry point to the Xbox ecosystem. Instead, Sony seems to be offering the most viable dedicated hardware for playing some of Microsoft's games.
Microsoft's Xbox consoles currently hold higher prices compared to the PlayStation 5, with the Xbox Series S (512GB) priced at $379.99, the Xbox Series S (1TB) at $429.99, the Xbox Series X (1TB) at $599.99, and the Xbox Series X (2TB) at $729.99. This pricing discrepancy arises despite Microsoft's substantial earnings and the ongoing tariff war, which has temporarily paused but not yet returned to pre-2025 levels. Conversely, Sony lowered its prices prior to any potential increase, capitalizing on the market trends and resulting in more competitive pricing for its hardware. Furthermore, the launch of the Switch 2 next week will intensify the competition among gadgets and technology brands in the gaming market.
