New Xbox expected to cost at least $1000, according to PSP 2 specs leaker
Microsoft's next Xbox console is expected to cost $1000 or more
😬 The next Xbox is predicted to cost at least $1,000, based on insights from leaker Kepler_L2
💰 Microsoft may plan to sell the console at a profit, moving away from the traditional loss-per-unit model
📈 The rise in hardware costs and multiple storefronts, like Steam, may contribute to the higher price
🥲 Recent price hikes, including the Xbox Series X now at $599, suggest a more expensive next-gen console
Microsoft recently unveiled that the new Xbox specs will be powered by AMD as part of a multi-year partnership. However, even though it's unclear how much the next-generation Xbox will cost, that hasn't stopped one prominent leaker from making a sobering prediction.
Kepler_L2, who recently shared the purported PSP 2 specs, believes that Microsoft's new Xbox will cost at least $1,000, and possibly more.
In a post on X, Kepler said: "Multiple storefronts = Console has to be sold at a profit Get ready for the first >$1000 console boys."
Kepler's prediction is based on Microsoft not selling its next hardware at a loss, which has historically been the case. Software and subscriptions are where the vast majority of revenue comes from for Microsoft, Sony and Nintendo, which usually offsets the loss on each console sold.
However, Nintendo sold the Switch for a profit, and Microsoft – which has continued to see Xbox hardware sales decline – may want to ensure each Xbox sold adds something to its bottom line.
That's especially true if the new Xbox offers multiple storefronts, as Kepler points out, as Microsoft won't be able to take as big a cut from software sales. Valve's Steam platform, which is heavily rumored to come to the next Xbox, takes 30% of each sale.
Microsoft's recent Xbox price hikes also indicate that the new Xbox will be more expensive than its predecessor. The Xbox Series X now costs $599, instead of the $499 it launched for, and Sony recently launched the PS5 Pro for $699.
The Asus ROG Xbox Ally X is largely expected to cost $899, the same as the Asus ROG Ally X, which means a $1,000 Xbox console wouldn't be beyond possibility.
Even the Nintendo Switch 2 is the most expensive console Nintendo has ever made at $449.99, and it seems that the trend of hardware and electronics becoming more expensive isn't ending anytime soon. Whether Microsoft could persuade people to buy a $1,000 Xbox is another story.
Adam Vjestica is The Shortcut’s Senior Editor. Formerly TechRadar’s Gaming Hardware Editor, Adam has also worked at Nintendo of Europe as a Content Marketing Editor, where he helped launch the Nintendo Switch. Follow him on X @ItsMrProducts.