Microsoft’s Xbox will Increase Global Console Prices

Microsoft’s Xbox will increase the global prices of its gaming consoles by up to $150 starting August 1, driven by a worsening supply chain crisis and surging memory chip costs.

Under the revised pricing, 512GB models will see a $100 hike, while 1TB models will cost $150 more. The company has also announced the discontinuation of its 2TB console variant.

"Console storage and memory prices have increased by more than 2.5 times and we expect another doubling by the fall of 2027," Xbox stated that the gaming sector is being hit particularly hard by the current hardware shortage.

These price hikes reflect a broader crisis across the consumer electronics industry largely fueled by the massive demand for memory and storage chips from the rapidly expanding artificial intelligence (AI) sector. Industry groups had previously warned that this intense demand would inevitably inflate consumer prices and disrupt global supply chains.

Competitors are making similar moves. Sony increased PlayStation 5 prices in April following a previous hike last August. Meanwhile, Apple recently raised the prices of its iPads and MacBooks could no longer absorb the soaring chip costs driven by AI data center buildouts.

For Xbox, this marks a continuation of ongoing financial adjustments. The company raised console prices twice last year to combat tariff pressures and according to recent reports planning significant layoffs and marketing budget cuts next month.