Xbox Series X price hiked by £170 due to rising memory chip costs

Microsoft has implemented a significant price increase for its Xbox Series X console, raising the cost by £170. The console now retails for £670, a substantial jump from its previous price of £500. This price hike is directly linked to escalating costs associated with memory chips and console storage, components crucial for the device's operation. The company has also applied a significant price increase to its Series S console, though specific figures were not provided for this model.

This move by Microsoft is not an isolated incident within the gaming hardware market. Competitors have also recently adjusted their pricing structures. Sony's PlayStation consoles have experienced similar price increases, and Valve's Steam Machine has also seen its price rise. These parallel adjustments suggest a broader market trend affecting the cost of gaming hardware.

The underlying cause for these widespread price increases is multifaceted. A primary driver is the rising cost of essential components, particularly memory chips. Demand for these chips has surged, partly due to their increasing use by artificial intelligence firms. This heightened demand from the AI sector is creating competition for resources, thereby driving up prices for all purchasers, including console manufacturers.