Microsoft’s unique strategy of offering two Xbox models aimed at different price points and audiences – the top-of-the-line model, Xbox Series X, and the more affordable, Xbox Series S – had set it apart in the gaming industry. And, while this approach has been criticized by developers like Larian Studios and Remedy Entertainment, specifically because of the underpowered hardware found on the Xbox Series S, the numbers speak for themselves. More people are buying the Xbox Series S than the Xbox Series X. Unfortunately, this “economical” approach has taken an unexpected turn in Brazil, and not in favor of the budget-conscious gamers.
Recently, news broke from Brazilian outlet, The Enemy, that Microsoft is raising the price of its lower-end model. Before this move, the Xbox Series S was retailing for between R$2000 and R$2500. Now, its suggested retail price is R$3,599. It’s an increase that pushes the price tag of the Series S close to the PlayStation 5’s Digital Edition model – a shocking fact considering the Series S is supposed to be a more budget-friendly option.
Interestingly, this price revision is exclusive to the white 512GB Xbox Series S variant; the 1TB black model will retain its original SRP. When further clarity was sought from Microsoft about this significant price surge, they redirected to The Enemy’s report, thus confirming the adjustment.
The Xbox Series S, from its inception, was designed as the economical counterpart to the Xbox Series X. Lacking certain features like a disc drive and native 4K resolution, it was priced at $300 or its regional equivalent. This pricing strategy, lower by $200 compared to the Xbox Series X, provided gamers an enticing entry point to current-gen gaming without heavy investment. The Series S became a preferred choice for many, especially when stacked against competitors such as the PlayStation 5 and Steam Deck.
The major appeal of the Xbox Series S in Brazil is now virtually gone with its new pricing. The updated price, which will translate to approximately $710 USD when converted, now matches the original Digital Edition PlayStation 5, making it as expensive as a console that’s many times more powerful.
Microsoft, in its statement, has emphasized its commitment to delivering an unparalleled gaming experience at multiple price points and catering to players’ varied requirements and budgets. While the tech giant’s dedication to the Brazilian audience is clear, the reasoning behind such a significant price jump remains nebulous. What could have led to the price hike? Is this to counterbalance the soaring costs of importing gaming consoles into Brazil? Or is there another reason? Only Microsoft knows.
While the PS5 underwent a price surge in several regions and will only become more expensive with the introduction of the PS5 Slim, this decision still isn’t as baffling as the Xbox Series S’s increased pricing.
With its modest hardware capabilities, it was the competitive pricing that primarily justified the Series S’s existence with the Xbox Series X. Bringing its cost nearer to the Series X makes the Series S’s value proposition questionable. Gamers might now perceive the price difference as trivial and opt for the high-end model instead, or worse still, most may skip Xbox entirely and opt for a PlayStation 5.
While Microsoft has hinted at the possibility of further price hikes in the future, this sharp increase for the Xbox Series S, especially in a market like Brazil, will inevitably be a barrier for numerous ardent gamers.
The ball is now in Microsoft’s court, and how it manages this price shift, whether temporary or long-standing, remains to be seen.
