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Microsoft hikes Xbox prices again due to AI-driven component costs

Microsoft is significantly increasing the prices of its Xbox consoles globally, with the 512GB Xbox Series S rising by $100 to $500 and 1TB models increasing by $150. This marks the third price hike for Xbox consoles since early 2025, attributed to a more than 2.5x increase in storage and memory component costs. The company cites the broader consumer electronics industry's struggle with component shortages, exacerbated by AI companies' massive data center investments driving up demand for memory and storage. AI

IMPACT Increased demand for AI infrastructure is driving up component costs, leading to higher prices for consumer electronics like gaming consoles.

RANK_REASON This is a price increase for an existing product line, not a new product release or a significant industry shift.

Read on Engadget →

AI-generated summary · Google Gemini · from 2 sources. How we write summaries →

Microsoft hikes Xbox prices again due to AI-driven component costs

COVERAGE [2]

  1. Engadget TIER_1 English(EN) · [email protected] (Kris Holt) ·

    Xbox prices are rising again after Microsoft helped drive up component costs

    We're all trying to find the guy who did this.

  2. Forbes — Innovation TIER_1 English(EN) · Paul Tassi, Senior Contributor ·

    Following Apple, Microsoft Dramatically Hikes Xbox Prices, Again

    Just hours after Apple increased its hardware prices across the board, Microsoft is doing the same with its Xbox consoles. For the third time.