I'm not even sure if the current Xbox Series models are being subsidized anymore. The All-Digital Series X costs $549.99 despite the Series X launching at $499.99 with a disc drive. If a disc drive costs $50 then the Xbox Series X All-Digital is $150 more than it should cost, assuming the bill of materials dropped by $50 over 5 years. The all-digital PS5 is $449.99, which also makes no sense.
I recall Daniel Ahmad and other sources stating that Microsoft incurs a loss of $100 to $200 on each Xbox manufactured.
The Series S costs $379.99, which I think is ridiculous.
Anyway, I predict that the bigboy model of the 10th Gen Xbox will be $649.99 or higher. In the past, consoles were cheaper than entry-level gaming PCs for the same graphics power (not counting Steam sales or online fees). I also predict that there will be more than just a bigboy model (Series X Successor) and a littleboy model (Series S Successor). There will be a third model that will be even weaker than the successor to the Series S (possibly even a 4th model too).
I wouldn't be surprised to see a next-gen Xbox with comparable graphics power to the PS6, costing $800, while the PS6 is sold at $550. But I think this is unlikely, so I'll stick to my $650 or greater prediction.
The typical Xbox Apologetics when this happens will be "But Gamepass is such a good deal that you should be happy to pay $150-$250 more than a PS6!".
And with that, Xbox will no longer be a console but a PC in console clothing. It will lack the four things that really make a console a console. No Disc Drive. Not cheaper than a PC for the same power. No exclusives. Not running an efficient OS.
P.S. Sony will follow suit 4 years after the launch of 10th Gen Xbox and stop subsidizing PS6 consoles. Nintendo will own the console market with 70% marketshare.
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