Xbox to Increase Console Prices Globally Up to $150 Due to Component Shortages

Microsoft's Xbox division will raise the prices of its gaming consoles worldwide by as much as $150, beginning August 1. The company attributed the price adjustment to a deepening global components crisis that has significantly increased the cost of storage and memory.

Console prices will increase by $100 for 512 GB models and $150 for 1 TB models. Xbox also announced it will discontinue its 2 TB model. According to Xbox, the prices for console storage and memory have more than doubled, with expectations of another doubling by the fall of 2027. The gaming sector has been particularly affected by this hardware supply chain crisis.

This marks the second time Xbox has increased console prices in the past year, previously citing tariff-induced cost pressures, intense competition, and uncertain consumer spending. Rival Sony also raised prices for its PlayStation 5 consoles in April, following a similar increase last August.

The escalating costs are not unique to the gaming industry. Apple recently increased prices for its iPad and MacBook lines, stating it could no longer absorb the rising costs of memory and storage chips, which are seeing increased demand from the artificial intelligence industry's data center buildout. Groups representing various industries, including automakers, retailers, and electronics firms, had previously warned of potential dramatic price hikes in U.S. consumer goods and supply chain disruptions due to the demand for memory chips.

In addition to price increases, Xbox is reportedly planning significant layoffs next month, alongside substantial cuts to marketing and other operational budgets, according to Bloomberg News.