Shortly after Apple announced increases in its hardware prices, Microsoft has disclosed that its Xbox game consoles will also see a price hike. Additionally, the company is discontinuing its 2TB console option.
Effective August 1, Xbox console prices will rise globally. The 512GB models will see a $100 increase, while the 1TB versions will jump by $150.
The new prices are outlined as follows:
- Xbox Series S 512GB will rise from $399 to $499.
- Xbox Series S 1TB will increase from $449 to $599.
- Xbox Series X 1TB Digital will go up from $599 to $750.
- Xbox Series X 1TB Disc will change from $649 to $800.
Microsoft attributes these increases to soaring prices for memory and console storage, which have more than doubled from previous levels. The company indicated that these prices could potentially double again by the fall of 2027. This adjustment follows a price hike in the U.S. just last October.
These changes come in the wake of Apple’s recent price increases on products including Macs and iPads. Apple referred to similar market pressures, citing the dramatic rise in memory and storage costs due to growing demand for AI infrastructure and data centers.
Both announcements highlight the impact of the AI surge on the pricing of consumer electronics. As technology firms invest in larger AI systems, the demand for advanced memory and storage chips has soared, straining supply chains and pushing industry costs higher.
In an attempt to ease customer concerns, Microsoft emphasized financing solutions and its commitment to increasing access to affordable hardware. The company announced plans to develop new programs that would offer previously used consoles at reduced prices.
Consumers who purchase qualifying Xbox products at Microsoft Stores will have enhanced access to buy now, pay later programs. Additionally, Amazon shoppers may qualify for up to 12 months of 0% APR financing on eligible transactions.
Furthermore, Microsoft aligns with Sony in implementing price hikes for gamers, with the PS5 digital edition now significantly more expensive than its initial launch price, jumping from $499 to $599. Meanwhile, although Nintendo’s increase for the Switch 2 has been less pronounced, it may face pressure to raise prices down the line.
