The next-gen Xbox Helix isn’t expected to include a disc drive, as Microsoft may currently be losing up to 200 US Dollars per Series X|S unit.
During the latest episode of the Windows Central Podcast, co-host and Xbox insider Jez Corden talked about the economics of the console business becoming increasingly difficult in the current landscape. He mentioned hearing from sources that Microsoft may currently be losing as much as 200 US Dollars on every Xbox Series X|S console sold. “I’ve heard that Xbox could be losing anywhere up to $200 per console right now,” he said.
According to Corden, rising memory prices, increasing component costs, tariffs, and broader supply chain challenges have dramatically increased manufacturing expenses. Those costs are making it tougher for console makers to maintain the traditional business model, where hardware is sold at a loss and profits are recovered through game and software sales. However, he believes the console business is also under strain because many players now spend little or nothing after purchasing their console. Free-to-play titles such as Fortnite and Roblox allow users to enjoy hundreds of hours of gameplay without buying additional games.
“If… Xbox could be losing anywhere up to $200 per console right now,” Corden said, “those users have to spend $200 on top of the $700 that they paid for the box… and that would, for a lot of users, take years to materialize.” He added that both Microsoft and Sony Interactive Entertainment have been reducing console shipments in an effort to minimize losses while increasing retail prices to offset rising production costs.
As for next-gen hardware, Corden does not expect Xbox Helix to include an optical disc drive. “The last information I heard… was that Helix was not planned to have a disc drive,” he said. He noted that Microsoft is closely monitoring the backlash surrounding Sony Interactive Entertainment’s move away from physical media. Nevertheless, he believes the economics of manufacturing optical drives make the inclusion of disc drives increasingly difficult to justify. “The business model and the economy around making optical disc drives is completely collapsed.” He suggested an external USB disc drive would likely be the most realistic compromise, though he admitted even that may be a stretch.
