Microsoft announced that starting August 1, the price of the Xbox Series S with 512 GB of storage will increase by $100 to approximately $500, while the 1 TB model will see a $150 increase, bringing its price to about $650. The entry-level Xbox Series X will now start at around $750.
This price hike follows a previous increase last October, and Microsoft attributed the need for further increases to a significant rise in console storage and memory prices, which have surged more than 2.5 times and are expected to double again by fall 2027.
The company noted that memory manufacturers like Micron and SK Hynix are prioritizing high-bandwidth memory for AI infrastructure, which has led to increased prices and limited availability for consumer electronics. This situation is particularly challenging for gaming consoles, which are often sold at a loss compared to their production costs.
The announcement comes on the heels of Apple's own price increases for MacBooks and iPads, indicating a broader trend in the consumer electronics industry. Following the news, Microsoft shares fell nearly 4%, while Apple's stock dropped 5%, reflecting investor concerns about the impact of rising costs on consumer demand