Microsoft announced price increases for its Xbox console lineup, with the premium Series X model with a disc drive now priced at £670, up from £500. The entry-level Series S console increased to £430, representing a significant jump from its previous £300 retail price. The company attributed these adjustments to escalating costs for memory and storage components used in modern gaming devices.
In the United States, Microsoft applied similar adjustments, raising the basic console price by $100 to $499 and increasing its higher-memory variant by $150 to $749. European markets experienced comparable increases, with Series S models featuring expanded storage selling for roughly €200 more than previously. Microsoft stated in June that it had hoped to avoid additional price hikes but determined the rising component expenses made the increases necessary.
The console manufacturer joins other major technology firms in passing component cost increases to consumers. Sony hiked PlayStation 5 prices by £90 earlier in the year, while Valve launched its gaming device at a higher cost than anticipated. Industry observers attribute rising component prices partly to demand from artificial intelligence companies for memory chips and graphics processing units used in AI content generation.
The price adjustments have drawn criticism from consumers and commentators. Social media users voiced concerns about paying premium prices for consoles released several years ago, with some characterizing the increases as excessive. Industry analysts have speculated that console prices may continue climbing, potentially driving more consumers toward game streaming services rather than purchasing hardware.
Microsoft’s gaming division has faced additional headwinds recently, with the company reporting declining revenues. The company initiated a major organizational restructuring last month, reducing its workforce by approximately 3,200 positions and describing it as the most significant Xbox overhaul in the division’s history.
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