Microsoft Increases Xbox Console Prices Again
L'essentiel
- Microsoft is increasing Xbox console prices globally starting August 1, with the 512GB Series S rising by $100 and 1TB models by $150.
- The company cites soaring storage and memory costs, partly driven by AI demand, marking the third price hike for Xbox consoles since early 2025.
Résumé généré par IA
Pourquoi c'est important
Microsoft is implementing its third Xbox console price increase since early 2025, attributing the hikes to a significant rise in storage and memory component costs.
Another hour, another batch of price increases for notable consumer products. Microsoft says it's once again jacking up the prices of Xbox consoles. Starting August 1, the 512GB Xbox Series S will be $100 more expensive and all 1TB models will run you an additional $150. The company is dropping the 2TB version of the Xbox Series X.
These changes will apply globally. Here's what the updated prices will look like in the US:
Xbox Series S (512GB): $500
Xbox Series S (1TB): $600
Xbox Series X Digital (no disc drive): $750
Xbox Series X: $800
Astonishingly, this is the third price hike for the consoles in the US since the start of 2025 for systems that debuted nearly six years ago. Microsoft increased Xbox prices in May last year then again in October. You already know exactly why.
"We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options. Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027," Xbox said in a blog post. "The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles. Unlike phones, computers, speakers and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make."
The blog post doesn't get into the details of why storage and memory costs have skyrocketed, but Xbox's parent is very much complicit. AI companies, which include Microsoft, are plowing immense levels of capital into building out data centers that require tons of memory and storage. The rules of supply and demand dictate that prices go up, which — as Xbox notes — is affecting all manner of consumer devices. Sony and Nintendo recently made their consoles more expensive as well, while Valve said this week the component crisis has affected price and availability of the Steam Machine, which starts at a whopping $1,049.
Microsoft says it's looking to lessen the sting of the Xbox price increases in a few ways. Those include a buy now, pay later program at Microsoft Stores, zero percent APR financing through Amazon, second-hand console purchases and certified refurbished systems. As it stands, Microsoft is not reviving its Xbox All Access program that allowed customers to buy a console and Game Pass Ultimate via a monthly payment plan.
À surveiller
Perspective IA — des possibilités, pas des certitudes
Xbox console prices will increase globally starting August 1.
Très probable · En quelques jours
Questions ouvertes
- How will these price increases affect Xbox sales?
- What specific suppliers are involved in component cost increases?
- Will other console manufacturers implement further price hikes?
