The AMD Magnus APU will cost Xbox Next almost twice as much as PlayStation 6, plus with Microsoft opening the door for third-party stores, the console war now has a new changing factor.
The console war is heating up, and this time, Xbox Next may not just be news for its power — but for its price. Not only has insider info claimed that Microsoft’s new console could cost double the price of the PlayStation 6, but there’s also a hardware and store reason for it.
Reasons Xbox Next May Be So Incredibly Expensive
AMD’s Magnus APU, a giant chip using a chiplet design, lies at the heart of Xbox Next. This new processor will likely be used in both the next-generation Xbox console, as well as a line of new Xbox-branded gaming PCs. While the APU amps up high performance and adds some flexibility to Microsoft, it also raises the overall production costs.
Then, there is the price pressure that comes from Microsoft directly supporting third-party stores on Xbox Next, such as Steam and GOG. This would cut off that constant revenue stream for Microsoft, which takes a 30% cut from every game sold on the current Xbox Series X|S. For this reason, it seems Microsoft will have no option but to market Xbox Next at favourable profit-margin-clawback loss-leading prices, and thus approximately 50% more expensive (or perhaps even more so) than Sony’s PS6 Final Edition release price tag.
Backward Compatibility and Limitations
If Magnus-powered Xbox gaming PCs are built, they won’t run old Xbox games; however, Xbox Next consoles will maintain backwards compatibility of classic Xbox titles. The reason for this is that publishers do not want an Xbox license become a PC license. While perhaps a dual-boot of Xbox and Windows might work, such an option is only theoretical at this point and likely never will be officially supported.
An Xbox Next vs PlayStation 6 Tactics War
Sony is following an alternative route with PlayStation 6. It’s said the it will provide a high-end, ray tracing-heavy 120 FPS, 4k gaming experience, while maintaining competitive pricing. Sony has a similarly POTABLE new device, a possible new console (stronger than Xbox ROG Ally X, possibly faster than PS5), etc.
Xbox Next, on the other hand, feels like the lovechild of a console and a gaming PC. It’s a smart long-term approach for Microsoft, but it’s going to be an expensive one for gamers to contend with.
What This Means for Gamers
Assuming the leaks come to be true, the Xbox Next price could potentially alter how players look at the console space. Rather than going head-to-head against Sony on price, Xbox Next could be a premium system, going at it with pre-built gaming PCs instead. At the same time, PlayStation 6 could remain the consumer-friendly video game console — the hardware rock star, so to speak — continuing to provide performance per dollar that no one can match.
FAQ
Xbox Next could be more expensive by virtue of costly AMD Magnus APU, and Microsoft will let third-parties do it hard too so we will see about that 30% store cut.
Yes, but only on the console. Backward compatibility through the Magnus APU will also not come to Xbox PCs due to licensing constraints.
The PlayStation 6 will supposedly feature 4K, 120 FPS performance; next-gen ray tracing; and a portable system more powerful than anything currently on the market – all while remaining affordable, at least in Sony’s eyes.
