The Xbox Series X/S consoles are sold at a loss of up to $200 per console[1][2][3][5].

Microsoft subsidizes the sale of each console because it expects to make this back through game sales and subscriptions to Xbox Game Pass[1][2][3][5]. This is a common business practice in the gaming industry, as companies often sell consoles at a loss and recoup the money elsewhere, such as from software sales and subscriptions[2][4][5].

The loss is not because the hardware costs more than the retail, but because of the R&D costs and the forecasted sales[6]. Microsoft has never earned a profit from selling Xbox consoles, including the Xbox One, 360, and the original console[4].

Citations: [1] Xbox Series X Consoles Sold At A $200 Loss, Says Phil Spencer - TheGamer https://www.thegamer.com/xbox-series-x-s-sole-at-loss-200-dollars/ [2] Microsoft loses up to $200 on each Xbox console sold | Eurogamer.net https://www.eurogamer.net/microsoft-loses-up-to-200-on-each-xbox-console-sold [3] Phil Spencer Reveals How Much Xbox Loses With Each Console Sold - Game Rant https://gamerant.com/xbox-console-sales-losses/ [4] Microsoft Says Xbox Consoles Have Always Been Sold at a Loss - PCMag https://www.pcmag.com/news/microsoft-says-xbox-consoles-have-always-been-sold-at-a-loss [5] Microsoft takes a $100-$200 loss on all Xbox Series X|S sales - TrueAchievements https://www.trueachievements.com/n51690/phil-spencer-xbox-series-x-s-loses [6] Microsoft takes a $100-$200 loss on all Xbox Series X|S sales : r/XboxSeriesX - Reddit https://www.reddit.com/r/XboxSeriesX/comments/yj7b3b/microsoft_takes_a_100200_loss_on_all_xbox_series/