Microsoft Raises Xbox Prices for the Third Time in a Year Due to Memory Shortage
Photo: CNET
Quick answer
Microsoft increased Xbox Series X and S console prices by $100–150 due to a 2.5x rise in memory and component costs, driven by global shortages.
Microsoft has announced its third price increase for Xbox Series X and S consoles in recent months, effective August 1. The 512GB model now costs $100 more, while the 1TB version is $150 pricier. The company has also discontinued the 2TB Xbox Series X variant.
In an official blog post, Microsoft attributed the price hikes to a global memory shortage and surging component costs. The company stated that component prices have risen over 2.5 times, with costs expected to double again by fall 2027. Similar challenges have affected other tech products, including Apple devices.
To mitigate the impact on consumers, Microsoft introduced installment plans and interest-free financing options. The company emphasized these measures aim to maintain console affordability despite rising prices.
The console price surge is not limited to Microsoft. Sony has raised PS5 prices twice, and Nintendo announced a price increase for the Nintendo Switch 2 in September. Even Valve’s new Steam Machine launched at $1,049—$150 more than the PS5 Pro.
Common questions
- Why did Microsoft raise Xbox prices?
- Prices increased due to a global memory shortage and a 2.5x rise in component costs, with further increases expected by 2027.
- How much did Xbox console prices increase?
- The Xbox Series S (512GB) rose by $100, while the 1TB model increased by $150. Similar adjustments applied to Xbox Series X.
- Have other gaming consoles seen price hikes?
- Yes, Sony and Nintendo have also raised prices on their consoles for the same reasons. PS5 prices increased twice in the past year, and Nintendo Switch 2 will cost more starting September.
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