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Here’s why you should think twice before investing in an updated Xbox

When Microsoft launched its then latest console four years ago, the world was a different place. its fourth and latest console was touted as the most powerful console ever. Microsoft certainly seemed confident. A lot has changed in those four years, and now we’re looking at its first updated hardware offering since then.
Two new models are now available, one being an “all-digital” box and the other still sporting a physical disc drive and packing more storage. As a day one buyer of the Xbox Series X, I decided to look at the merits of changing out my aging console considering all that has been going on. What I have concluded is that there are important things to consider before forking out more for new Xbox hardware.
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Related Xbox Series X vs Xbox Series S – Which one should you buy? Here’s a simple guide to help you decide which Xbox you should buy this holiday season – the Xbox Series X or the Xbox Series S. Read on!
Value
What is going on with pricing?
Before we look at the new hardware, let’s just look at initial pricing for this generation and where those prices are now. One thing that has surprised me the most about this console generation in general is that neither Microsoft nor Sony have been able to push down prices in a meaningful way. Looking at my original pre-order, I paid £449.99 UK ($499 US) for my unit. Looks like I got a deal with that one. In more ordinary technology cycles, the cost of hardware should go down over time, but incredibly, Microsoft is still listing the same Xbox Series X hardware, except now it costs more, coming in at £479.99 here in the UK. In the US it’s the same price as on launch day.
Through that lens, let’s now look at the latest consoles. The 1TB All-digital Xbox Series X comes in at $449.99 dollars, but as it’s “all digital” you’ll lose the Blu-ray disc drive. If all you’ll ever do is play games on Game Pass, this is probably okay, but losing the drive has a few disadvantages. Firstly, you won’t be able to use the Xbox as a Blu-ray player and, secondly, you’ll lose out on being able to buy and play physical game discs.
Being able to pick up used physical discs to play on the Xbox is actually a great way to save money on games. Often, digital copies will remain stubbornly high in price if bought from the Xbox store. Having access to a physical disc means you’ll be able to pick up much cheaper used games and often much cheaper new copies from places such as Amazon. Having a drive might even save you money if you’re smart with how you buy content.
Moving onto the updated Series X with the disc drive in place, we’re essentially looking at a device with an extra 1TB of internal storage. Considering an extra 1TB expansion card is still coming in at an eye-watering $99 (and that’s on sale by the way!), this doesn’t seem like a bad deal. But hold up, we’re still talking about hardware which is four years old. Both the console and its exotic expansion cards are still at prices near to its initial launch window. Despite all the consoles being sold and the cost reductions that should happen over time, customers are still being asked to pay more or the same level as on launch day. Pricing of this generation of consoles is problematic.
Features
What have the motherboard and process shrinks brought to the new consoles?
Microsoft has also chosen not to take the opportunity to upgrade the internal Wi-Fi card or perhaps switch out the custom memory expansion slot with a standard NVMe slot. You’d think that four years in, throwing in a few more features to sweeten the deal would have made sense to grab a few extra sales. The best you’re getting here is a little less power consumption.
Late investment
This console generation has a lot less time going forward than it does behind it
Source: Austin Evens/YouTube
When you’re thinking about buying new hardware, both its value and features are, of course, considerations, but so too should be longevity. No doubt a brand new Xbox Series X will last you another four years. They are probably the best built Xbox consoles to date. Question is, how much longer has this generation got before it’s upgraded?
Even if you put aside the relative cost and the features, you’ll need to consider where we are in this generation’s life cycle. For the current Xbox Series consoles, we’re mid-way through at least. What that means is a bit subjective but, essentially, we’re waiting for the next generation’s hardware to arrive.
When that happens is anyone’s guess, but when it comes time for consumers to lay more money on the table for an Xbox, it makes things complicated. If you’re deeply invested in the Xbox ecosystem and have a large paid-for digital library, you might need to swap out your hardware due to a hardware failure. Buying a replacement device is essential for you, but there’s no incentive to grab a new model. Grabbing a pre-owned or manufacturer refurbished model makes more sense. If you’re thinking of jumping into Xbox for the first time, you’ll be committed to buying a four-year-old platform at the same price as launch day.
Without new features or better pricing for a new Xbox combined with a next generation looming, it makes it a hard sell. To complicate matters, Sony has a new console available which does offer some new bells and whistles if you want something with some up-to-date features.
The concept of an Xbox console is at a juncture
Microsoft’s gaming future is no longer centered around the Xbox
Microsoft has clearly made the choice not to join Sony on a mid-generation refresh. As someone who has previously bought a mid-gen updated model, I think it’s the right move. Sure, it would have been nice to have some new features, but the Xbox One X didn’t end up being around for too long or seeing too many games take advantage of the new hardware.
Regardless of this, Microsoft appears to have changed its plans around Xbox hardware. The current refreshed models appear to be about face from the console maker’s future intentions. According to the leaks released when Microsoft were buying Activision, the 2024 Xbox could have been much more like a PS5 Pro or better. The company clearly didn’t see any good reason to embark on a new hardware adventure.
The recent advertising around Xbox has centered around Microsoft’s desire to break free from being a console-centered gaming company. With Game Pass, everything is an Xbox, and Microsoft wants you to play their games everywhere and not tie their studios into platform exclusives. What this means for future Xbox hardware is unclear. There will most certainly be another new Xbox, but will it even make sense to buy one? If it’s the same experience or better on a PC or a PlayStation, what is the selling point?
Depending on how radical Microsoft is willing to go with their plans for “everything is an Xbox”, the notion of needing an Xbox console may even further be called into question. The Xbox experience on the PC has to date been less than ideal, as a game pass subscriber it should be possible to play the entire back catalog of Xbox games on a PC too.
The “Xbox” proposition you get on PC is far less compelling due to the lack of the entire Xbox console back catalog. The Xbox backwards compatible program needs to be ported to the PC. If Microsoft weren’t working on this aspect of upgrading the Xbox PC experience to align with the next generation, it would be very surprising. Leveling the playing field between the Xbox and PC in terms of games is essential if Microsoft ever intends to convince us that a PC is an Xbox too.
When Microsoft stops talking about Xbox
There have been a few moments for sure where Microsoft execs have committed to the new Xbox generation, but the mood music has changed. They have begun pushing the idea of everything being an Xbox while at the same time not really pushing for sales of a console through any meaningful advertising or positive buzz. It’s all gone rather quiet. What they have said very clearly is that they haven’t been able to push the growth of console sales.
It’s certainly easy to see where that might have been a different story had it delivered better quality games, cheaper hardware, and more advertising, but for now Microsoft feels their strategy has left them very much in third place and up to their neck in expensive new game studios.
Microsoft’s track record of sticking with making its own hardware when they perceive they have lost is that it tends to fall back to its software only roots. Windows Phone is an example of their willingness to exit hardware manufacturing when they persisted in coming in third. Their answer then was triumphant, hailing that they would come out better anyway as their software would be on other platforms where they would make money without the overhead of hardware manufacturing costs. Will the same messaging return for Xbox or has it already started?
When looking at the big picture, is it more important that Microsoft sells all their games everywhere or holds them back with exclusives and makes less money? With more than double the number of PS5 consoles out there, Microsoft is leaving money on the table by holding back any game sales for PS5 for the sake of maintaining a reason to buy an Xbox. With all these swirling factors, it makes most sense now to carefully consider how you’re investing in any new Xbox hardware.

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