Xbox Wanted To Win Players Over By Not Raising Prices To Match PS5, Court Docs Show

In August 2022, Microsoft responded to Sony’s decision to raise the cost of PlayStation 5 consoles and expressed its intention to maintain competitiveness by refraining from doing the same with Xbox Series X|S.

Based on FTC filings and internal correspondence (initially reported by The Verge), Xbox CFO Tim Stuart informed Phil Spencer and Microsoft CFO Amy Hood that the Xbox team had anticipated PlayStation’s move to escalate prices for its console. Ami Silverman, former head of consumer sales and marketing, emphasized the importance of Microsoft being “dedicated to gamers” as they have not yet overcome the challenges they face. She stated that this could be their opportunity to gain fans rather than simply following others. This information is part of the ongoing disclosure discussions related to Microsoft’s acquisition of Activision Blizzard.

What Silverman is likely alluding to is Xbox’s position in relation to PlayStation, the current market leader. Even Microsoft publicly acknowledged that Xbox had “lost the console wars” against PlayStation and Nintendo. In August 2022, Microsoft also issued a statement affirming that they continuously evaluate their business and have no plans to increase prices at the moment.

However, Microsoft eventually raised the price of the Xbox Series X in June in most markets, excluding the US, Japan, Chile, Brazil, and Colombia. Additionally, Microsoft increased the monthly subscription fees for the standard version of Xbox Game Pass by $1.

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