Microsoft raises Xbox console prices due to rising component costs

a few hours later apple Announcing price increases for MacBooks and iPads, microsoft Consumers can also expect to pay more for Xbox gaming consoles, he said, reflecting the increased cost of components.

Starting August 1, Xbox Series S consoles with 512GB of storage will increase in price from $100 to about $500, and 1TB models will increase in price by an additional $150, Microsoft announced Thursday. The entry-level Xbox Series X starts at around $750.

“Last October, we increased the price of Xbox consoles in the U.S. by $20 to $70,” the company said in a blog post. “We hope that no further price increases are necessary and have spent the past few months working with our suppliers to explore options.”

“Console storage and memory prices have increased more than 2.5x and we expect them to double again by fall 2027,” Microsoft said.

memory manufacturers etc. micron SK Hynix and SK Hynix have limited capacity and prioritize high-bandwidth memory for artificial intelligence infrastructure. Nvidiagraphics processing unit. Manufacturers are raising prices to reflect increased demand, resulting in expanding profit margins.

This is a burden for consumers looking to purchase devices such as smartphones, tablets, and computers. Apple’s announcement on Thursday came after CEO Tim Cook told the Wall Street Journal that price increases were inevitable.

“The entire consumer electronics industry is suffering from the current parts crisis, but the impact is particularly severe on home game consoles,” it said in the post. “Unlike phones, computers, speakers, and other consumer devices, consoles are typically sold at a price that is less than the cost of manufacturing them, rather than being sold for a profit.”

Microsoft has announced that the 2TB Xbox Series X, released in 2024, will no longer be available.

Microsoft stock fell 3.5% on Thursday. Apple stock fell 6.1%.

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