Next-Gen Xbox Magnus Could Exceed $1000 Price Tag Amidst AMD Power Leap

The next generation of Xbox consoles, reportedly codenamed Magnus, is shaping up to be the most ambitious – and possibly the most expensive – gaming system Microsoft has ever built. According to credible insider Kepler L2, a well-known AMD leaker with a history of accurate information, the upcoming console could cost well above $1000 due to its cutting-edge hardware and high production costs. Based on multiple independent sources, this rumor sits firmly at a 90% ‘Highly Likely’ probability level.

At the heart of the new Xbox Magnus lies AMD’s powerful new APU, which is expected to deliver a performance leap that dwarfs current-gen consoles.

But such performance comes with a price. The bill of materials – essentially, the cost of building the physical console – is said to be more than double that of the Xbox Series X, whose own components already cost around $650. That means Microsoft is looking at raw costs exceeding $1300 even before marketing, logistics, and other expenses come into play.

Traditionally, console makers offset these costs by selling hardware at or near a loss, relying on the 30% cut from game sales and digital transactions to make up the difference. However, the Xbox Magnus might break this model entirely. Rumors suggest that it could include native Steam and third-party store support, giving players freedom over where to buy their games. While this could make Magnus the most open and versatile console ever made, it would also mean Microsoft can’t rely on its usual digital store revenue – making a $1000+ price tag almost unavoidable.

The timing of such a bold pricing move is risky. Xbox’s brand perception is currently struggling after a wave of studio closures, project cancellations, and price increases across both hardware and the Game Pass service. Consumer trust has been shaken, and while enthusiasts might pay a premium for raw power, the mainstream market could balk at a four-figure console, especially with the PlayStation 6 expected to launch in a similar window.

Interestingly, insiders believe that Sony may not need to engage in a price war this time. Kepler L2 speculated that a cheaper PlayStation 6 Digital Edition could exist, but it would likely sell at a heavy loss – something Sony might not even need to do given the Xbox brand’s weakened position. Without strong competition, Sony could play it safe while still dominating the market.

Yet, from a technical standpoint, Magnus could redefine console gaming. Early leaks suggest performance levels comparable to a high-end PC, with advanced ray tracing, faster SSD throughput, and an APU leveraging AMD’s latest architecture. While it may not dramatically outperform the PlayStation 6, its hardware aims to deliver a smoother, premium experience. Xbox CEO Sarah Bond’s previous comments about focusing on ‘high-end, long-term hardware excellence’ seem to align perfectly with this rumored design philosophy.

Whether gamers are ready to pay over a thousand dollars for that premium experience remains to be seen. But one thing is clear: if these leaks are accurate, Xbox Magnus could either restore Microsoft’s reputation as a pioneer in console innovation – or mark one of its most daring and divisive hardware launches in history.