The console market has long operated on a model where manufacturers sell devices with minimal profit or even at a loss, offsetting costs by selling games and subscriptions. For Microsoft, the situation has reportedly reached an alarming level.
According to journalist Jez Corden, the company is losing money on every Xbox Series X|S sold. Moreover, these losses persist even after the planned price increase for consoles in August 2026.
Corden also spoke about the potential issues with the possible "open" next-generation Xbox, Project Helix:
If Xbox Helix really turns out to be an "open" PC, Xbox will have no choice but to price it as an "open" PC.
According to the journalist, if Xbox owners start buying games on Steam instead of the Microsoft store, the company will lose a significant portion of its revenue.
I hear Xbox is currently losing about $150 on each Xbox Series X|S sold, even after the planned price increase in August 2026. Imagine if 50% or more of Xbox Series X|S users bypass the Xbox ecosystem and buy games directly on Steam. The margin would get even worse. Then the business would simply cease to exist.
Because of this, Project Helix might have an unusually high price. Possibly over $1000.