Rumour: Microsoft takes bigger loss on Xbox Series S than X

It's not uncommon that video game companies take a loss on hardware when launching consoles. It's simply important to reach sustainable sales number so that money can be made on games and peripherals. As Microsoft has revealed the prices for both Xbox Series S and X this week, many have suspected that the company is taking a fairly hefty loss on them.

Without revealing his sources, the very well-know insider and GamesBeat Journalist Jeff Grubb added some insight to this during the night. According to him, they are both launched at a loss, and it is mainly Xbox Series S that will cost Microsoft money:

"It's taking a loss on both the S and X, and it seems like it's taking a bigger loss on S."

One big reason for this is the CPU which it actually shares with it's bigger brother Xbox Series X. Tom Warren, Senior Editor from The Verge, tweeted how astonishing this actually is for the $299 you will pay for Xbox Series S:

"Microsoft has confirmed the Xbox Series S uses the same CPU as the Xbox Series X running at 3.6GHz. Yes, the Xbox Series S CPU is faster than the PS5"

Did you expect Microsoft to lose money on each sold console next generation, and did you think the losses would be bigger on Xbox Series S?