Microsoft has announced a rise in Xbox prices in both the UK and European markets

Recently, Microsoft announced a significant rise in the prices of Xbox consoles across the UK and Europe, leading to a surge ranging between £130/€150 and £170/€200. This price adjustment follows the global price increase that was revealed in June.

In the UK, the updated prices are as follows:

• The Xbox Series S 512GB has increased from £299.99 to £429.99.
• The Xbox Series S 1TB now costs £519.99, up from £349.99.
• The Xbox Series X 1TB Digital rose from £449.99 to £619.99.
• The Xbox Series X 1TB Disc jumped from £499.99 to £669.99.

Meanwhile, in Europe, the prices have been adjusted as follows:

• The Xbox Series S 512GB now stands at €499.99, up from €349.99.
• The Xbox Series S 1TB is increased to €599.99 from €399.99.
• The Xbox Series X 1TB Digital has risen from €549.99 to €749.99.
• The Xbox Series X 1TB is now priced at €799.99, up from €599.99.

Microsoft explained that the rising costs of storage and memory are driving these price hikes, while also discontinuing their 2TB model.

The company highlighted a substantial increase in costs, stating that storage and memory expenses have multiplied over 2.5 times and may double by fall 2027. The global components shortage has been severe, particularly affecting the console industry. Unlike other electronic goods like smartphones and computers, gaming consoles are often sold below production cost.

In addition to the price changes, the company has undergone notable restructuring. As part of this, Microsoft laid off 3,200 employees and divested five studios. These changes were paired with a reported $1.7 billion drop in Xbox sales revenues for 2026, with hardware sales experiencing a 29% decline compared to the previous year.

Responding to the situation, Xbox CEO Asha Sharma emphasized learning from both successes and failures, focusing on future development that aligns with player interests. Sharma mentioned that although Xbox attracted over 200 new players in FY26, there was no proportional growth in the business. She stressed the importance of realigning investments towards player-valued aspects to achieve growth by the end of 2027.

Furthermore, Microsoft CEO Satya Nadella asserted that the company's leadership is making crucial decisions related to content, platforms, and operations to strategize for future growth. Nadella mentioned their leading IP and global talent pool as key strengths to propel the business forward by fiscal year 2027.