Next-Gen Xbox “Magnus” Bill of Materials May Push its Price Well Beyond $1000

The next-gen Xbox system will be a very premium and high-end experience, but it sounds like the experience won’t be the only premium element of the console. As suggested by known AMD insider Kepler L2 on the NeoGAF forums, the price of the system could easily hit well above the $1000 mark, due to a few reasons, including its high bill of materials, which is considerably higher than that of the Xbox Series X.

Next-gen Xbox “Magnus” Bill of Materials May Push its Price Well Beyond $1000

Commenting on the next-generation system, which will be powered by the AMD “Magnus” APU, the known AMD leaker, who has provided accurate information in the past and pointed insights into upcoming AMD hardware, said that the price of the next Xbox will 100% be over $999.

As things stand, the system’s bill of materials (the raw cost of the physical system) is over twice that of the Xbox Series X, which is currently $650. As if this weren’t enough, if the next-gen Xbox Magnus will indeed support Steam and 3rd party stores as rumored, Microsoft won’t be able to subsidize selling the system at a low or near brea-even price with the guaranteed 30% cut on every game sold on the system.

The Next-gen Xbox “Magnus” High Price May Impact Sony’s PlayStation 6

The high price of the next generation Microsoft system, and the current perception of the brand, which is at an-time low following price increases of Xbox hardware and the Xbox Game Pass service, and the cancellation of multiple projects which have led to studio closures and multiple waves of layoffs, may also impact the PlayStation 6 and Sony’s general strategy for the next generation.

Asked about the possibility of the release of a PlayStation 6 Digital Edition without a disc drive at a lower price that the main edition of the system, Kepler L2 said that it would only be possible at a significant loss, as the Japanese company essentially no longer has competition, considering the current state of the Xbox brand.

Although the next-gen Xbox may end up being one of the most expensive gaming systems ever released, the system has a high chance of being the most powerful to date as well. Judging from leaked system specifications, the console won’t massively outperform the PlayStation 6, but will still be able to offer the premium version of the performance the Sony system will offer, something that would definitely fall in line with recent statements from Xbox CEO Sarah Bond.

Follow Wccftech on Google or add us as a preferred source, to get our news coverage and reviews in your feeds.