Microsoft will raise Xbox Series S and Series X console prices by $100 to $150 starting August 1, blaming memory and storage costs that have more than doubled as AI chipmakers compete for limited supply.
Microsoft announced Thursday it will raise prices on Xbox Series S and Xbox Series X consoles beginning August 1, citing surging costs for storage and memory components driven by AI infrastructure demand.
The Xbox Series S with 512GB of storage will increase by $100, bringing the price to approximately $500, while the 1TB model will climb $150. The entry-level Xbox Series X will now start at roughly $750, Microsoft said in a blog post.
"Last October, we increased Xbox console price by $20-$70 in the U.S.," the company said. "We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options."
Microsoft said console storage and memory prices have increased by more than 2.5x and that it expects another doubling by fall 2027. Memory manufacturers including Micron and SK Hynix have limited capacity, and both have been prioritizing high-bandwidth memory for AI infrastructure — chiefly the graphics processing units made by Nvidia — over consumer electronics applications.
Microsoft also said the 2TB Xbox Series X, introduced in 2024, will no longer be available.
The announcement came hours after Apple disclosed price increases for MacBooks and iPads, with Apple CEO Tim Cook having told The Wall Street Journal that such hikes had become inevitable. Both companies' shares fell on the news — Microsoft dropped nearly 4% on Thursday, while Apple's stock declined 5%.
"The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles," the Xbox unit said in the post. "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."
That structural reality leaves console makers with less cushion than smartphone or tablet manufacturers when component costs spike, reinforcing the squeeze on a gaming hardware segment already navigating a competitive market.
The price increases reflect a broader pattern playing out across consumer electronics, as AI infrastructure buildouts absorb a disproportionate share of global memory production — leaving manufacturers of everyday devices with constrained supply and higher per-unit costs. With another doubling of memory prices projected by 2027, further adjustments across the consumer electronics industry appear likely.
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Apple raised prices on MacBook and iPad models Thursday, citing a surge in memory and storage costs driven by AI data center demand, while warning that further increases are likely ahead.
SK Hynix shares surged 11% on Thursday after the South Korean chipmaker filed plans to raise as much as $29.4 billion through a Nasdaq ADR listing, with trading expected to begin July 10.
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