Microsoft is facing turbulent times in the gaming market, with significant developments affecting the Xbox business. Among these changes, the company has announced a price increase for its Xbox Series X and S consoles in Japan, a market that has historically been difficult for Microsoft to penetrate.
Microsoft Confirms Price Increase for Xbox Series S and X in Japan
In a recent press release on its Japanese website, Microsoft revealed that it will be raising the prices of its latest gaming consoles. The new prices are as follows:
- Xbox Series X: Increased from 59,978 yen (£319.44/$406.65) to 66,978 yen (£356.72/$454.11)
- Xbox Series S 1TB (Black): Increased from 44,578 yen (£237.42/$302.24) to 49,978 yen (£266.18/$338.85)
- Xbox Series S 512GB: Increased from 37,978 yen (£202.27/$257.49) to 44,578 yen (£237.42/$302.24)
This price adjustment represents approximately a 12% increase for both the Xbox Series X and the Xbox Series S 1TB models, and around a 17% increase for the Xbox Series S 512GB model.
The Japanese Market Challenge
The decision to raise prices in Japan is particularly notable given Microsoft's ongoing struggle to establish a significant presence in this market. Since their launch, Xbox Series consoles have sold around 600,000 units in Japan, significantly trailing behind the PlayStation 5, which has sold approximately 5.6 million units. This disparity highlights the near 10:1 sales ratio in favor of Sony.
A major factor contributing to the price increase is the current strength of the Japanese Yen. The yen is at its lowest rate against the US dollar since 1990, meaning Microsoft is earning less per console sold in Japan, necessitating a price hike to maintain profitability.