Key facts
- Xbox Series X price increased by £170 to £670.
- Xbox Series S price increased to £430.
- Microsoft cited rising memory chip and console storage costs.
- US prices increased by $100-$150.
- EU prices increased by approximately €200.
- Demand from AI firms is contributing to higher component prices.
Microsoft has increased the retail price of its Xbox Series X console by £170, bringing the total cost to £670, citing rising expenses for memory chips and console storage. The more affordable Xbox Series S also saw a significant price hike, now costing £430, a roughly 43% increase from its previous £300 price tag.
These price adjustments follow similar increases for Sony's PlayStation consoles and Valve's Steam Machine, with manufacturers pointing to mounting costs for essential hardware and storage components. The demand for these components, particularly memory and graphics cards, has been amplified by the burgeoning needs of artificial intelligence firms, driving up prices for components like random-access memory (RAM).
While companies attribute the price hikes to increased component costs, some critics have voiced concerns about consumers bearing the brunt of these increases, especially for products that have been on the market for several years. There is speculation that console prices may continue to climb. In response to rising hardware costs, Amazon's gaming division has suggested that consumers might increasingly opt for game streaming services over purchasing new consoles.
These price increases come after Xbox initiated a significant restructuring in July, which included approximately 3,200 workforce reductions.