SAN FRANCISCO: Microsoft will raise Xbox console prices worldwide by $100 to $150 from August 1, citing a sharp rise in component costs driven by demand from artificial intelligence data centres.
In the United States, the Xbox Series S will increase to $500, while the Series X will rise to as much as $800. Microsoft has not yet announced revised prices for Europe, where the Series X currently sells for around 600 euros. The company will also discontinue the 2-terabyte model.
Third Xbox price rise
This will be the third Xbox price increase after a global hike in May 2025 and a United States-only increase in October.
Microsoft said the rapid construction of data centres for artificial intelligence training and applications has pushed up the price of memory and storage chips, which are used in most electronic devices.
The company said the cost of storage and memory has more than doubled and could double again by late 2027.
Console market under pressure
Other technology firms have also raised prices. Sony increased the price of its PlayStation 5 in Europe in April, while Nintendo has announced a price rise for its Switch 2 from September 1.
Microsoft said consoles are usually sold at little or no profit, making them more vulnerable to higher production costs.
