Microsoft Raises Xbox Console Prices Citing Soaring Memory Component Costs

Microsoft announced price increases for Xbox game consoles effective August 1, with the Xbox Series S jumping $100 to approximately $500 and the 1TB model rising $150, while the entry-level Xbox Series X now starts at $750. The company cited surging memory and storage component prices, which have increased more than 2.5 times compared to a year earlier, with further doubling expected by fall 2027. The price hikes reflect broader supply constraints in DRAM memory as manufacturers prioritize high-bandwidth memory for AI infrastructure, squeezing capacity for consumer electronics. Unlike smartphones and computers that are sold at profit margins, game consoles are traditionally sold at a loss, making them particularly vulnerable to component cost pressures. Microsoft also discontinued the 2TB Xbox Series X model.