Microsoft confirms a budget version of its next-gen console, the $299 Xbox Series S, says it is the “smallest Xbox ever”
EngadgetChristine Fisher
Context & Ripple Effects
Microsoft's confirmation of the $299 Xbox Series S closes out months of speculation that began when a leaked internal document pointed to a cheaper, less powerful sibling for the Series X. The company is now detailing the machine alongside its flagship: same CPU, arriving November 10, and pitched as the "smallest Xbox ever" — a design lineage that runs back to the Xbox One S's 40% size reduction in 2016 and Microsoft's long-rumored disc-less, sub-$200 console plans reported in 2018.
The significance is positioning rather than specs: per the follow-up detail sheet, the Series S delivers 4x the processing power of the Xbox One while sharing the Series X's CPU, making it an entry point into the next generation rather than a compromised side product.
First-order effects
Buyers get a $299 on-ramp to next-gen hardware that keeps the Series X CPU and 120fps support, letting Microsoft put a next-gen console in living rooms at roughly half the cost of a premium tier.
Second-order effects
A $299 price floor pressures Sony to justify a higher entry price for PlayStation 5 hardware, and pushes game sales toward Microsoft's digital storefront and subscription ecosystem since the small, low-cost box leaves little room for disc-based retail.
Third-order effects
If the pattern holds, console generations split permanently into a premium physical-media tier and a compact digital-only budget tier, with platform holders competing on services and storefront attach rather than raw GPU power alone.
The trend: Console makers are splitting each generation into a high-end flagship and a cheap digital companion, using the budget tier to widen the install base that subscriptions monetize.
👀 Let's make it official! Xbox Series S | Next-gen performance in the ˢᵐᵃˡˡ ᵉˢᵗ Xbox ever. $299 (ERP). Looking forward to sharing more! Soon. Promise. https://twitter.com/...
👀 Let's make it official! Xbox Series S | Next-gen performance in the 🔎 smallest 🔍 Xbox ever. £249.99 (ERP). Looking forward to sharing more! Soon. Promise. https://twitter.com/...
A first look at Xbox Series S coming in November. Incredible $299 price for a next gen console, will open the market to even more gamers. https://twitter.com/...
This is...wow. A $299 next-gen console coupled with Game Pass for a huge library of games (including new releases) will be an incredible value for the price. This is big for Xbox. Your move, Sony. 😮 https://twitter.com/...
This is a really good offering when paired with Game Pass - an affordable next-gen option. But it desperately needs a re-brand, because Series S means nothing, and doesn't get that across at all. The average consumer would have no idea at a glance. It's Wii U all over again. http…
Xbox really needs to win this console generation, imagine how more players and more eyes would benefit franchises like Gears and Halo. Xbox was on top in the 360/PS3 generation and that was the high point for Gears and Halo, can we get back there again? Let's wait and see. https:…
Xbox Series S at £249? Man, that's a cracking price. I still think we'll be a PlayStation 5 household but that's only going to help make next-gen gaming more affordable for all. https://www.engadget.com/...
good idea: Microsoft immediately wins the price war, and further dominates value-conscious households with the All Access offering, growing the number of subscribers, which is clearly its chief goal
bad idea: Microsoft has doubled-down on its “no exclusives for a year” message and told would-be early adopters “here's the perfect second console for you; go out and buy the PS5 first and then pick this up when there are exclusives to play”.
This is a terrific price but a weird concept - a next-gen console that won't even do 4K. I guess it's a cheap version to keep the player base big until Series X gets more affordable? https://twitter.com/...
I like how the first next gen console to get an official price isn't the PS5 or the Series X, but the Series S console that was just officially announced today. https://twitter.com/...