Next-Generation Xbox Console Will be Priced at Over $1,000 – Rumour

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Recent comments from Xbox president Sarah Bond suggest a new, high-end Xbox console is in development, and it’s likely to be pricey. Reports indicate the cost to manufacture the console will exceed $999, meaning the final retail price could be well over $1,000.

According to reliable leaker KeplerL2 on the NeoGAF forums, the cost of materials used to build the APU powering the next Xbox is more than double the $650 cost of materials for the Xbox Series X/S. The ‘bill of materials’ refers to the total price of all the parts needed to make a product. Companies buy these parts in large quantities, which lowers the cost, and this cost is a key factor in determining the final price of the product.

KeplerL2 points out that Microsoft won’t be able to sell the console at a loss – meaning below the cost of the parts – if it allows other game stores like Steam to operate on it. Both Sony and Microsoft have often sold consoles for less than their production cost, relying on profits from game sales to make up the difference. However, if third-party stores are included, Microsoft won’t earn those profits on games purchased through those stores, making a subsidized price harder to sustain.

The next Xbox is expected to use a powerful AMD processor called Magnus. This processor will combine two main parts: one chip handles the CPU functions, and another handles the graphics (GPU). The CPU will likely be based on AMD’s Zen 6 architecture and will feature a total of 11 cores – 3 standard Zen 6 cores and 8 more efficient Zen 6c cores. These cores will share a 12 MB cache to speed up data processing. The GPU will use AMD’s RDNA 5 technology and include 68 compute units and 4 shader engines, along with a 24 MB cache.

The console will likely have a memory system that can handle 24, 36, or 48 GB of RAM, though the exact amount hasn’t been finalized. The main processor, called the Magnus APU, is estimated to use between 250 and 350 watts of power. Interestingly, it’s expected to be about 30-35% more powerful than the processor planned for Sony’s PS6, currently known as the Orion APU. There are also reports that Sony is developing a portable version of the PS6 that could run on as little as 15 watts.

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2025-10-23 17:41