Key facts
- Microsoft is increasing Xbox console prices worldwide by $100-$150, effective August 1.
- The price hike is due to soaring storage and memory costs driven by a global components crisis.
- The 512 GB Xbox models will increase by $100, and 1 TB models by $150.
- The 2 TB Xbox model will be discontinued.
- This marks the third price increase for the current Xbox generation.
- Microsoft is offering financing options and promoting used consoles to make them more accessible.
Microsoft announced on Thursday that it will be increasing the prices of its Xbox consoles worldwide, effective August 1. The price hikes, ranging from $100 to $150, are attributed to a significant rise in the costs of storage and memory components, exacerbated by a global supply chain crisis.
The 512 GB Xbox models will see a $100 increase, while the 1 TB versions will go up by $150. The company also stated that the Xbox model with 2 TB of storage will be discontinued. This marks the third price adjustment for the current generation of Xbox consoles, with the total price increase since their 2020 launch now estimated between $250 and $300.
Microsoft noted that the entire consumer electronics industry is facing component shortages, but the impact is particularly acute for consoles, which are often sold at a loss. The company's rivals, PlayStation and Nintendo, have also implemented price increases for their respective consoles. In response to the rising costs, Microsoft is highlighting programs such as buy-now-pay-later services and interest-free financing, alongside efforts to make pre-owned consoles more accessible.
Apple also announced price increases for its products on Thursday, citing similar component cost issues. The company's price hikes for MacBooks, iMacs, iPads, and other devices can be as much as $300.