Phil Spencer explains the price increase of the Xbox Series S in Brazil

Phil Spencer is currently in Brazil to celebrate the Xbox brand with Brazilian fans and was once again asked about the increase in the price of the Xbox Series S in the country. According to him, they maintained the price for as long as possible and even with the increase, it is the smallest profit margin in the world for the company.

After commenting on the intense reactions to the price increase of the Xbox Series S by passionate Brazilian fans, Spencer was asked directly about the price of the console by FlowGames and responded that they were unable to maintain the old price for any longer and that they are still not making much money with the console.

“Yes. I’ll start by acknowledging that price increases will never be a positive point. It’s not something we like, we want to make the price as affordable as possible and that’s why we kept it as long as we could, two years after launch, to make it it viable for consumers who wanted a Series S,” replied the leader of Microsoft Gaming.

“You know this because you are in this market: launching products in it, with the fees and everything, is something very, very challenging,” he added.

“And even with the price we have now, after the increase, that is, for us, in terms of what we can see from Series S sales in Brazil, probably the lowest margin in the world of what is left for us, of the revenue we get to obtain.”

Spencer says that it is necessary to take into account the long-term viability of the business and above all, whether for consumers or the company, manage the business well.

“So, about the price increase, it was this: we maintained the original price as far as we could, and we did that for three years. I know that price changes will never be applauded. It won’t be my big moment on stage, I know that, and I listen people’s feedback, how they feel at a time when electronic products are already expensive enough due to taxes and we increased the price and created concern. We listened to that concern and I present mine: I have to run a good business here.”

Spencer said that they present several ways to play Xbox, whether on console, PC or in the cloud, cheaper ways to enjoy the content that their studios and partners develop. Furthermore, it highlights that one should not compare Brazilian prices with those in the United States, as the situations and taxes are different.

The Microsoft leader also states that one should not compare the prices of other rival consoles and that there are cheaper ways to buy their consoles, even in Brazil.