Xbox has announced that it will not follow the price hike for PlayStation 5

Xbox has announced that it will not follow the price hike for PlayStation 5

Phil Spencer, the CEO of Xbox, said that Microsoft has no intentions to raise the price of its consoles, after Sony stunned fans last month by raising the price of PlayStation 5.

Spencer spoke overnight with CNBC about the current economic challenges many people encountered, stating that Xbox didn''t believe it "was the correct move for us at this point."

"In a time when our customers are more economically challenged and concerned than ever, we don''t believe it''s the right move for us at this point to be increasing prices on our consoles," Spencer said.

Is Spencer willing to derogate the Xbox Series X/S pricing to be greater? Yes, he wouldn''t, but from his statements today, it''s unlikely.

The Xbox boss said that "value is extremely important" and that the company was seeing success with its lower-priced 250 Xbox Series S console, which included more than half of Series X/S sales.

"Y''know, we''re always evaluating our business going ahead," Spencer said. "I don''t think we can ever say on anything that we will do something," said Spencer. "But when we look at our consoles today... we believe value is absolutely vital."

"We are pleased with Series S'' position in the market, which is our lower-cost console. Over half of our new players we''re discovering are coming in through Series S. And I can assure you today that we have no intentions to increase the price of our consoles."

Nintendo recently expressed concern to customers that it had no intentions for a similar price increase for the Nintendo Switch.

PlayStation boss Jim Ryan blamed Sony''s decision on "extreme global inflation rates," as well as adverse currency trends, which weighed on consumers and caused pressues on many industries." ''It''s been a difficult decision,'' he stated last month.

This move has been largely criticised, particularly at a time when many people are facing huge financial difficulties.

Sony''s decision was due to foreign exchange expenses, which it now transfers to consumers, according to industry analyst David Gibson of MST Financial.

"The whole country would have budgeted on certain cross rates instead of in dollars," Gibson said, "but the pound and other currencies have all moved because of rising interest rates. Yes, freight rates have gone up, but the semiconductor market is improving, and DRAM prices are falling. The fact that Sony did not change US prices shows how it''s mostly a forex situation versus costs in dollars, and not inflation."

Spencer was asked to discuss the increasingly public concern about Microsoft''s desire to buy Activision Blizzard, as well as the conflict of words being traded by it and Sony over Call of Duty.

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