Memory and storage expenses drive sharp increases across major gaming markets
LONDON: Microsoft has announced significant global price increases for its Xbox console lineup, citing rising costs of memory and storage components as the primary reason for the move.
The flagship Xbox Series X with a disc drive will now retail for £670 in the United Kingdom, up from its previous price of £500. Meanwhile, the entry-level Xbox Series S has increased to £430 from £300, representing one of the steepest price hikes in the console’s history.
In the United States, Microsoft has raised the price of its base Xbox console by $100 to $499, while higher-storage models now cost up to $749. Similar increases have also been introduced across European markets, where some versions now cost about €200 more than before.
Microsoft said it had hoped to avoid another price increase but argued that escalating hardware costs, particularly for storage and memory chips, made the adjustment unavoidable.
Industry faces mounting production costs
The announcement follows similar pricing decisions by other gaming companies. Sony increased PlayStation 5 prices earlier this year, while other manufacturers have also pointed to higher production expenses.
Industry analysts say the cost of RAM, graphics processors and storage chips has surged because of strong demand from artificial intelligence companies. These components are essential for modern gaming consoles, making manufacturers increasingly vulnerable to supply chain pressures and rising production costs.
Consumers react as gaming market adjusts
However, the latest increases have drawn criticism from gamers, many of whom argue that consumers are paying significantly more for hardware launched several years ago. Social media users described the new prices as excessive, while some analysts warned that console prices could continue rising if component costs remain elevated.
Meanwhile, Microsoft continues restructuring its gaming division after reporting weaker revenues. The company recently announced thousands of job cuts as part of what executives described as the largest organisational overhaul in Xbox’s history, highlighting the financial pressures facing the global gaming industry.
