Mike Ibarra Criticizes the Price of the New Xbox Console

Mike Ybarra, former president of Blizzard and top Xbox executive, sharply criticized rumors about the cost of Microsoft's next console, claiming that a price range of $1,200 to $1,800 would be doomed to fail. He noted that such a pricing proposition is unfeasible for the mass market and is unlikely to attract a sufficient number of buyers. Ybarra stated, "It's very hard for me to believe this. A 'console' is a device for the mass audience, and it needs great games and a low entry price." In his opinion, the ideal price range for a console should be between $399 and $499.

According to a recent article by Fortune, internal estimates at Microsoft suggest that the next home console will cost between $1,200 and $1,800 if the company does not subsidize the production of the devices. This scenario is driven by an unprecedented rise in component prices, linked to a global memory shortage affecting the entire electronics market. For comparison, in November 2020, the PS5 and Xbox Series X launched at a price of $499.

The situation in the console market remains challenging: after a series of price increases, the PS5 and Xbox Series X are more expensive than ever. For Xbox, the decision regarding the next console will be one of the key aspects of the reboot being conducted by Asha Sharma. The price and positioning of the new system will determine how Microsoft competes with Sony and Nintendo in the next generation.

Ybarra noted that current systems, such as the PS5 and Xbox Series X, adequately meet the needs of most users, and there is no need for a more powerful console in the near future. The capabilities of these systems allow for optimization work, which also reduces the need for new devices. As an example, Ybarra cited Microsoft's announcement of implementing AMD's FSR 4.1 upscaling technology for Xbox Series X and Xbox Series S, which should improve graphics quality without the need for hardware replacement.