Just hours after Apple announced price hikes across its hardware lineup, Microsoft revealed that Xbox game consoles are also getting more expensive. In addition, the company announced that it is discontinuing the 2 TB model.
Starting August 1st, Xbox console prices will increase worldwide. The 512GB models will cost $100 more, while the 1TB versions are expected to increase by $150.
The price changes are as follows:
- Xbox Series S 512GB goes from $399 to $499.
- Xbox Series S 1TB goes from $449 to $599.
- Xbox Series X 1TB Digital goes from $599 to $750.
- The Xbox Series X 1TB drive is going up from $649 to $800.
The company says the increases are due to increased memory and console storage prices, with costs more than 2.5 times higher than previous levels. Microsoft has warned that those prices could double by the fall of 2027. The move comes less than a year after the company raised Xbox prices in the US last October.
The announcement follows Apple’s round of price hikes affecting products such as Macs and iPads. Apple cited the same pressures across the industry, pointing to rising memory and storage costs fueled by unprecedented demand for AI infrastructure and data centers.
Together, the back-to-back announcements underscore just how much the AI boom is affecting the price of everyday electronics. As tech companies invest heavily in larger artificial intelligence systems, demand for advanced memory and storage chips has increased, tightening supply chains and driving up costs across the industry.
Microsoft tried to soften the blow by highlighting financing options and plans to expand access to low-cost hardware. In its announcement, the company said it is “working on new programs to provide previously played consoles at lower prices.”
Customers who buy eligible Xbox hardware through Microsoft Stores will have greater access to buy-now, pay-later plans, while Amazon shoppers can qualify for up to 12 months of 0% APR financing on eligible purchases.
Plus, Microsoft is now on board Sony asking gamers to pay more, with the digital PS5 now costing significantly more than it did at launch, rising from $499 to $599. Meantime, Rise of Nintendo for the Switch 2 was relatively modest, but the rival may face pressure to raise prices further in the future.
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