ice said:
MS shoud've took the hit, raising the prices of you're failing platforms is crazyyy work. They already have so much going against them as a platform I don't understand lol
$380 for a console that struggles to sell on sale at $200-$250? REEEEEEEEE |
There was no good business decision to be made here, they were fucked either way, absolutely no company is eating a 145% tariff and as we already know, Xbox consoles were already losing money even before this to a tune of $100-$200 per sale, now add a 145% tariff onto that, Lmao. We also already know as per court documents that Microsoft refuses to subsidise Xbox hardware anymore than they already are, instead they're trying to increase their profit margins, which they've been doing the past two quarters. They'd be losing a horrific amount of money on each console sold due to these tariffs which would plummet their profit margins.
They'd end up losing $300-$400 on every Xbox console sold easily, likely even more, Lol.
So from a business perspective they have two choices, either they eat the 145% in tariffs and therefore take some horrific losses and plummet their profit margins, or they increase the price to maintain the profit margins and decrease production of hardware, this will essentially kill Xbox hardware sales and instead they will focus on their current userbase of Xbox + PC + 3rd Party to maintain a healthy profit.
But of course you can say that Microsoft is a trillion dollar company which makes dozens of billions in profits every quarter so they can afford to take huge losses in one of their divisions for the good of the consumer but that's capitalism for you, they don't care about the consumers, they care about their shareholders and margins, they must always increase. It goes without saying that all billion dollar publicly traded companies suck.
