Xbox has, over the years, stood out as one of the top gaming products in the market. From the cool features, high performance system, and quality graphics, it doesn’t surprise me that it can compete favorably with its arch-nemesis, SONY’s PlayStation. Besides the features, Xbox also has a price advantage over its rivals.
So, why is the Xbox so cheap? The Xbox is cheaper because its price is set lower than other companies since they are new to the market and want a price advantage over their competitors. These affordable prices help them conquer the global market to reach different consumers.
The manufacturers also know that they will have more revenue from games, subscriptions, and license signing from developers. Microsoft also buys its products in bulk, therefore, incurs low production costs.
Microsoft has many competitors in the gaming market; therefore, they have to set their price right, or else, they won’t compete well. An affordable device will ensure that every gamer, veteran, or beginner can access great content and have an incredible gameplay. Therefore, I dug deeper to find out how Xbox prices its gaming systems and why it is comparatively more affordable.
Compared to other systems, the Xbox is more affordable to allow their loyal gamers to acquire the consoles. Afterward, the developer will earn from the rendered services and subscriptions from the clients. Microsoft deploys a strategy where they sacrifice a one-time loss for a continuous future revenue inflow.
The expected income will offset deficits incurred during the sale of the digital device. For every gadget sold, Xbox developers get royalty discounts. As the device saturates the market, there is pressure to lower prices since the Xbox’s demand gradually drops upon the launch of an updated version.
Xbox has not been in the market for as long as its predecessors. As a result, it doesn’t have a massive following; therefore, the best way to attract new users is to make their products more affordable than the competitors’. Slightly cutting its prices below the market value helps it gain popularity to become a household name. Generally, this device competes well with other digital game manufacturers in both pricing and performance.
Xbox Vs. PlayStation
Xbox is a console system from Microsoft that made a debut in the gaming market in 2001. On the other hand, the PlayStation is a product of the Japanese electronics company SONY that has been present for longer since its launch in 1994. To date, both products target the same clients and have always competed with each new release and update. Therefore, read on as I compare different models launched simultaneously, based on their functionality and price ranges.
PlayStation 3 Vs. Xbox 360
Since its launch in 2005, PS3 revolutionized gaming systems with its improved architecture. First, it had 256 MB XDR DRAM and GDDR3 memory. In contrast, the Xbox 360 is a modification of the original version, but, instead of the 512 MB chipset memory, it has an IBM CPU which is triple-core. Secondly, the PS3 uses an in-built Blu-Ray player with HD output and sound system, while the Xbox 360 uses Microsoft’s Windows Operating System.
It is more user-friendly and famous for its great gaming and community experience. However, for value, the PS3 has been more expensive from its launch to date. In the first year, you would buy it at around $600 compared to its rival’s pricing at about $400. Today, the Xbox is still cheaper, going at approximately $250, while the PS3’s average price is $350. The two are also quite similar, as they are both at 3.2 GHz and are 7th generation consoles.
However, the Xbox is slightly slower than the PS3, which operates more functions per second. With improved technology, the two allow their users to play online through the Xbox Live and PlayStation Network (PSN). Another advantage over the Xbox is that the PS3 doesn’t charge for online gaming, while their counterpart has a monthly subscription, though affordable.
PlayStation 4 Vs Xbox One
The respective manufacturers released the original versions of the PS4 and the Xbox at around the same time. They are both of high performance, making it a tough call for gamers to pick the best. Being at the same price range didn’t make it any easier, as they both sell at about $400, depending on the model.
Starting with the PS4, it is one of the most notable releases from SONY, bringing in over a hundred million units in sales. It uses GPU and AMD 86 processor with faster GDDR5 memory. For the Xbox one, which succeeded the Xbox 360 in 2013, it is slightly slower than the PS4 with a DDDR3 memory. Many say that the PS4 may be a better console since it is faster and competes better in performance.
The two consoles are pretty similar, not only due to the price range but also the great gaming experience and high-quality graphics. They also have incorporated the latest technology in their features to improve their customer experience.
For example, Microsoft promotes immediate response tech support through Xbox Assist and has added Alexa voice assistance to control your console remotely, thanks to Xbox Skill. You can also block out notifications and gift games to your friends. On the other hand, the PS4 is more user-friendly and offers great navigation.
Xbox One S Vs. PlayStation 4 Slim
Both manufacturers focused on game improvement by availing exclusive games, offering maximum entertainment for the user. They have in-built hard drives, each with 1TB storage space for your games and movies. Additionally, you can connect an external drive for extra space. As the name suggests, the PS4 Slim is the smaller PS4 version, while the Xbox is bulkier.
Both consoles didn’t have 4K gaming or HDR at their release, unlike the updated systems. The Xbox One S is at 1.75 GHz, and its RAM at DDR3, unlike the PS4 Slim, at 1.6GHz. Therefore, the two are at the same processing level, but the Xbox One S is slightly more powerful. Although the Xbox One S is more robust, it is still cheaper than its competition. On average, the PS4 Slim is more expensive by around $100.
Xbox One X Vs PlayStation 4 Pro
These two gaming systems have a tough standoff due to similar features, but the Xbox One X is more powerful while the PS4 Pro has amazing games. One similar feature is streaming and 4K gaming; you can stream Netflix with both systems and play in 4K.
The advancement to the PS4 came a year earlier than the Xbox One X, but the latter made up for it with improved performance. Both consoles uniquely stand out, but the Xbox ticks most boxes.
The two are almost at the same price range, but the PS4 Pro is expensive by a small margin. The Xbox One X provides stronger performance and a great gaming experience as it supports backward compatibility and has a stable online network system. It also tops in quality graphics and performance, making it a top choice among pro gamers.
With it, you are certain of entertainment and a great online experience. The PS4 Pro is also a great console and possesses some outstanding features. For one, it supports VR gaming and has special features.
Xbox Series X Vs PlayStation 5
These consoles are the most current gaming systems in the market incorporating the latest technology. They are already popular among avid gamers, and they are in such high demand that it’s tasking to find one. Both manufacturers keep trying to win users with new games and updates. They are both powerful, support 4K gaming, and have a fast loading.
PS5 and Xbox Series X are better than all their predecessors as they emphasize on innovation and great entertainment. As expected, given the high performance and great quality, the two are quite pricey. In this case, the two have almost the same price, but the PS4 has a slightly smaller price tag. They are the closest in performance compared to other models with high speeds and great specs.
Why Is Xbox Cheaper than PS?
Gaming companies are overworking to ensure that online gaming die-hards get these devices at pocket-friendly prices since they will still have to buy new games. Of course, these gadgets usually have different prices but let’s find out why Xbox is more affordable than a PlayStation.
Xbox has a smaller fan base than the PlayStation, thereby lowering its demand. Consequently, the device becomes more affordable to attract more customers. Initially, Microsoft had launched several consoles at higher prices that made the users shy away, but they later dropped them to have a competitive advantage.
Microsoft’s goal is to cover the global market, and the best way to do that is to sell at affordable prices that most gamers, regardless of their financial status, can obtain. With elaborate systems where they can get revenue besides console sales, the manufacturers can sell the devices at little or no profit.
Microsoft sells its consoles at a more reasonable cost than its counterparts to gain a major following. With an increasing client base, Xbox aims to produce many consoles at a reduced cost and higher revenues. Similarly, the company can sell the Xbox devices without aiming for huge profits but remain afloat.
Fortunately, the company later earns its dues from selling games and user subscriptions. Moreover, Microsoft aims to reach every player, even those who may find it hard to purchase other gaming gadgets.
The Xbox prices are low to enable Microsoft to become a market leader in the gaming world and surpass its main rival, SONY. On the other hand, PlayStation has already grabbed the lion’s share in the digital gaming world since they have been in the market longer. Therefore, they are contented with selling at normal costs allowing Xbox to swoop in with its competitive prices.
Why Is the Xbox Cheaper than Gaming PCs?
Nothing excites a gamer more than gaining access to affordable gaming. However, gaming PCs may be quite costly, especially the initial cost. The good thing is, Xbox did take this into consideration, and I will tell you why and how.
Generally, Xboxes are sold at a lower cost to entice people to buy the console, knowing that they will cater for games and other Microsoft services. Secondly, an Xbox may be more affordable because the manufacturers buy parts in bulk, thereby may receive discounts allowing them to price their consoles at a lower value than gaming PCs.
The gadget developers are also influential companies that may use their powers to strike deals in their favor with the component producing firms. Besides, game console owners receive money from software developers. You will also notice that the gadget version depreciates over time, and the price lowers when a new model comes in.
Microsoft can sell their consoles at a loss, the same price as the hardware manufacturing cost or a small profit margin. This works because the devices’ production is usually large-scale, allowing the vendor to enjoy the economies of scale. Therefore, they can set their prices lower and won’t feel a pinch. Additionally, the company earns when software game developers pay some revenues as licenses to sell their games on their platform.
Xbox requires upgrades into new firmware versions over time, and the older generations become outdated. Consequently, older Xboxes are at fairly lower prices than the current devices, which come with great features. Ultimately, gaming consoles are cheaper for they have a wider consumer base than PCs and apply mass device production.
Wrap Up
Despite being new to the market, Xbox has competed with its competitors and is still standing strong. From the Xbox 360 to the current Xbox series X, the console guarantees an amazing gaming experience thanks to high-quality graphics, great speeds, and performance. The biggest Xbox competitor is the Play Station.
They compete in quality, but the Xbox has the advantage of low cost. In some cases, the Play Station is more expensive by hundreds of dollars, making gamers turn to the Xbox instead. Given that the two are quite similar in performance, some users find the Xbox more convenient.
Microsoft set a low price to etch its place in the gaming market and chose to maintain the policy to retain its customers. Another argument is that the manufacturers will still earn a fortune from users buying games and paying for subscriptions. Therefore, even when the console is cheap, and they fail to make profits, they can still make revenues that will serve the purpose. The great thing about the gaming system is that the low price doesn’t compromise on the quality.
