The Console That Isn't Sold at a Loss Just Raised $150M

Business

18 September 2026 10:49

Well, they are in profit at least.

Nex has raised Series E of more than 150 million dollars, co-led by Baillie Gifford and BAI Capital, with NBA Investments, Logitech, Medici Capital Partners and the Raine Group participating.

Nex Playground has passed one million units sold. Subscribers are up 7x in 18 months, approaching a million, with the company expecting to cross that by year end.

The economics

Every console company sells hardware below cost and recovers it through software. Microsoft revealed it as much when raising European prices by up to 200 euros, and Sony's Totoki has spent the year explaining why monetising the installed base matters more than console prices.

Nex runs the something else. The hardware sells for a profit, and subscribers pay up front.

New CFO Jeff Shouger, formerly of Niantic, Zynga and EA, explained the development side making a motion game doesn't cost 30 million dollars the way a console or mobile title does. Production and capital costs are both low, and the workforce is distributed.

What it actually is

A compact console using computer vision to track up to 18 points on a player through a built-in camera. No controllers. Up to four players at once. Hardware ships with original five games, everything else comes through subscription.

It's the Kinect concept, but one that works.

President Thomas Kang has said the UK launch is "beating forecasts, which is a good sign."

The raise

Shouger stated Baillie Gifford approached Nex rather than the other way round, which in the current funding climate is worth stating.

Bing Gordon, the veteran gaming and technology executive, joins the board alongside Shouger.

CEO David Lee announced "Families have timeless needs: to move, grow, connect, and have fun. The response to Nex Playground has shown us that active play can serve those needs at a meaningful scale. We are building Nex to be a 100-year company."

Baillie Gifford's Alexander Nicolier on why the subscription matters: "The console makes it remarkably easy for families to get up and moving, while a growing library of games available through subscription gives Nex the opportunity to build a lasting relationship with them. As long-term investors, that combination is particularly exciting. That is rare in gaming."

More:NEX Playground Beats PS5

Tags: NEX Playground

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