Microsoft has announced a significant global price increase for its Xbox consoles, citing rising memory and storage chip costs as the primary reason for the move. The latest increase follows similar pricing changes across the gaming industry as hardware component costs continue to rise.
The Xbox Series X with a disc drive now costs £670, up from its previous price of £500. The standard Xbox Series S has also increased from £300 to £430, marking an increase of around 43%.
Microsoft said it had hoped to avoid another price increase after announcing earlier this year that hardware costs were rising. However, increasing prices for console storage and memory components have made the latest adjustment necessary.
The price hikes extend beyond the UK. In the US, the entry-level Xbox console now costs $499 following a $100 increase, while the higher-capacity model has risen by $150 to $749. In Europe, the higher-storage Xbox Series S is now priced about €200 higher than before.
The announcement comes after Sony increased PlayStation 5 prices by £90 in March. Valve also launched its PC-console hybrid at a higher-than-expected price, with both companies pointing to rising hardware and storage component costs.
Industry experts note that prices for RAM and graphics cards have surged due to growing demand from artificial intelligence companies, placing additional pressure on hardware manufacturers.
The latest price increases have drawn criticism from gamers, with many questioning the higher cost of consoles that have been available for several years. Some industry observers also believe console prices could continue to rise as component costs remain elevated.
The announcement comes during a challenging period for Xbox. Microsoft recently reported lower gaming revenues and, in July, carried out what it described as the most significant restructuring in Xbox’s history, reducing its workforce by approximately 3,200 employees.
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