Microsoft Has Announced Another Price Increase for Xbox Consoles

Due to rising production costs and the ever-changing market situation, Microsoft announced that on August 1st they will increase the prices of Xbox Series X/S consoles in various configurations, which has caused some concerns among gamers.

In their latest blog post, the Xbox team announced price increases of US$100 for the 512 GB models and US$150 for the 1 TB models. Additionally, they revealed that the 2TB Xbox Series X will be discontinued. You can check out the official statement from their representatives below:

“Last October, we increased XBOX console price by $20-$70 in the U.S. We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options. Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027. The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles. Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make.”

Bloomberg has noted that this is already the third time Microsoft has raised the prices of Xbox consoles in just over a year, and with the ongoing component shortage crisis, the situation could worsen in the future. It's worth mentioning that not only Microsoft but also Sony is experiencing similar changes. According to preliminary reports from insiders, the production cost of the upcoming PlayStation 6 has already risen to nearly $1,000, whereas not long ago, it was estimated to be around $760.

Are you disappointed that Microsoft has raised prices on Xbox consoles? Share your thoughts in the comments below!