Xbox's Sneaky Strategy Revealed: How They Won Players Over Without Price Hikes, Court Docs Unveil
Xbox's strategic move: Opting against price hikes to match PS5, court documents reveal Prioritizing gamers, Xbox aimed to retain player loyalty by keeping prices in check
In August 2022, Microsoft responded to Sony's price hike for PlayStation 5 consoles and expressed their intention to remain competitive by not following suit with the Xbox Series X|S.
FTC filings and internal emails (initially reported by The Verge) reveal that Tim Stuart, Xbox CFO, informed Phil Spencer and Microsoft CFO Amy Hood that the Xbox team had anticipated Sony's decision to increase console prices. Ami Silverman, former head of consumer sales and marketing, emphasized the importance for Microsoft to focus on gamers, stating that they still have work to do and that this could be their opportunity to gain fans rather than simply following others. This information is part of ongoing discussions regarding the disclosure related to Microsoft's acquisition of Activision Blizzard.
Silverman is likely referring to Xbox's stance against PlayStation, the dominant player in the market. Microsoft openly acknowledged that Xbox had fallen behind PlayStation and Nintendo in the "console wars." In August 2022, Microsoft released a statement affirming its ongoing assessment of the business and made it clear that price hikes were not currently on the agenda.
In June, Microsoft ultimately raised the price of the Xbox Series X in most markets, excluding the US, Japan, Chile, Brazil, and Colombia. Additionally, Microsoft increased the monthly subscription cost of the basic version of Xbox Game Pass by $1.
