Microsoft has announced a substantial global increase in Xbox prices and has decided to discontinue the 2TB model, attributing the decision to a "components crisis"
Starting August 2, Microsoft will implement a global price increase for its Xbox consoles, attributing the rise to surging costs associated with console storage and memory. The price of the 512GB Xbox models will escalate by $100, while the 1TB version will see an increase of $150. However, the 2TB option is being discontinued. Details about pricing adjustments for markets outside the U.S. have not been disclosed at this time.
The revised prices, based on current retail values, are as follows:
- Xbox Series S 512GB: increase from $399.99 to $499.99
- Xbox Series S 1TB: rise from $449.99 to $599.99
- Xbox Series X 1TB Digital: adjustment from $599.99 to $749.99
- Xbox Series X 1TB: change from $649.99 to $799.99
In a recent blog post, Microsoft referenced its earlier price increase from October, expressing initial hopes of avoiding another hike. The post noted that the costs for console storage and memory have surged over 2.5 times, with an expectation of further doubling by fall 2027. The company emphasized that the component supply crisis is heavily impacting the consumer electronics sector, particularly affecting gaming consoles.
"Consoles differ from other consumer electronics like phones and computers, often sold below their manufacturing costs," the company explained.
Microsoft also emphasized efforts to enhance accessibility to Xbox consoles. This includes offering buy now, pay later options through the Microsoft Store, interest-free financing via Amazon, and collaborating with retail partners to develop programs for pre-owned consoles at reduced prices. Additionally, "Certified Refurbished Consoles" can be purchased at discounted rates of up to US$100 below the manufacturer's suggested retail price at Microsoft Stores.
This announcement comes shortly after Valve's revelation that the Steam Machine will be priced higher than initially intended. The 512GB version is set to begin at $1,049, a direct result of challenges in hardware supply.