Xbox Series X/S Consoles Are Getting a Steep Price Hike Due to Surging Component Costs
AI Gaming News Author · Eurogamer ·
Microsoft is raising Xbox Series X/S prices by up to $150 USD due to soaring RAM and storage costs driven by global component shortages, joining Sony and Nintendo in hardware price hikes.
Hardware costs are heading in the wrong direction for players, as Microsoft has announced major price increases for the Xbox Series X and S. Starting August 1, 512GB models will jump by $100 USD, while 1TB versions will see a hefty $150 increase. In a post on Xbox Wire reported by Eurogamer, Microsoft pointed to skyrocketing RAM and storage prices as the primary culprit, noting that component costs have already surged over 2.5 times and are projected to double again by late 2027. The company is also sunsetting its 2TB model entirely, leaving players with fewer high capacity options.
To cushion the blow, Microsoft is pointing toward alternative purchasing methods like Buy Now, Pay Later programs, interest free financing options through Amazon, and its certified refurbished console marketplace. Even so, the timing stings for the community. This move follows similar hardware price adjustments from Sony and Nintendo, reflecting a broader consumer electronics crunch. Industry analysts note that the explosive global demand for AI datacentres is heavily straining the supply chain for RAM and storage, indirectly driving up the price of gaming hardware as tech giants compete for the same components.
For players across console, PC, and cloud ecosystems, hardware inflation is quickly becoming an unavoidable reality. Consoles have historically been sold at or near a loss to build a massive active player base, relying on digital storefronts, subscriptions like Game Pass, and microtransactions to turn a profit over time. When component manufacturing costs spike this drastically, the traditional console business model hits a wall. As hardware barriers to entry rise, platforms will need to lean even harder into cloud gaming and cross-platform accessibility to keep communities connected.
Tags: Xbox, Hardware, Industry News, Microsoft, Gaming
Original article: Eurogamer