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Next Xbox Will 'Not Be Out of Position on Power or Price' with PS5

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Microsoft's next-gen Xbox, codenamed Project Scarlett, "will not be out of position on power or price" compared to Sony's PlayStation 5, according to Xbox's Phil Spencer.

Spencer told The Verge this is an important learning from the current generation, which saw Microsoft infamously launch Xbox One at a $100 premium compared to PlayStation 4, despite being the less powerful console. Being competitive in power and price is key for Microsoft, as Spencer and his team started work on Scarlett "with a goal of having market success."

Microsoft revealed the first details about Project Scarlett earlier this year at E3. The console will house a custom processor co-developed by Microsoft and AMD that utilizes the latter's Zen 2 CPU and Navi GPU architecture, in addition to a "new-generation" SSD and GDDR6 memory. The result is a box capable of 8K output, 120 frames per second, and ray tracing.

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