Shock Price: Next-Gen Xbox ‘Magnus’ May Exceed 1000 USD
Premium Power: Next-Gen Xbox ‘Magnus’ Price Could Skyrocket
Reports indicate the next-generation Xbox console, internally codenamed “Magnus,” may carry a starting price significantly higher than current models. It seems the system could launch well beyond the 1000 United States dollar (USD) mark. This potential high cost is driven by the system’s robust internal hardware. This includes a substantial Bill of Materials (BoM). Therefore, Microsoft may be positioning its next console as a premium, high-end experience.
The console is reportedly powered by the custom AMD “Magnus” APU. This chip is rumored to be exceptionally large and powerful. It is expected to feature a chiplet design. The APU may include Zen 6 CPU cores and RDNA 5 GPU compute units. Additionally, the system may house up to 48 gigabytes of GDDR7 memory.
An AMD insider, known for providing accurate hardware information, suggested the console’s price will 100 percent be over 999 USD. The system’s Bill of Materials, which is the raw component cost, is rumoured to be more than double that of the Xbox Series X. This massive increase in component cost naturally translates to a much higher retail price for consumers in Southeast Asia.
Targeting the High-End PC Market
Xbox CEO Sarah Bond recently stated the next console will be a “very premium, very high-end curated experience.” The alleged technical specifications and high price align with this statement. The new Xbox is believed to be a PC-console hybrid. It might support a version of Windows and third-party storefronts like Steam.
This strategy suggests the new console aims to compete directly with high-end pre-built gaming personal computers. The impressive specifications, comparable to modern premium graphic cards, would undercut the price of similar high-spec personal computers. Therefore, the high price point reflects its ambition to be a powerful and versatile gaming machine.
Impact on Console Subsidies
Historically, console manufacturers have often sold hardware at a loss or near break-even price. They recoup the loss through a percentage of every game sale on their exclusive storefront. However, if the Xbox Magnus supports third-party stores like Steam, the 30 percent cut on game sales is no longer guaranteed.
This lack of guaranteed subsidy on all software sales would prevent Microsoft from selling the hardware at a loss. Thus, the hardware’s cost must be more accurately reflected in the retail price. This factor further contributes to the expected price exceeding 1000 USD.
Setting a New Console Pricing Tier
The potential price tag places the next-gen Xbox in a new category for home consoles. This could impact the competitive landscape in Southeast Asia. Leaks suggest the price could range from 800 to 1200 USD. This is substantially more expensive than the rumored price point for the competing PlayStation 6.
Ultimately, the Xbox Magnus appears to be a major shift in Microsoft’s console strategy. It focuses on premium performance and a hybrid personal computer experience. This is a gamble on whether consumers will pay a significantly higher price for top-tier console power.
origin: wccftech
