Xbox follows Apple with price increases

2026-06-25 · Source: TechCrunch · Field: Technology & Digital — Gaming & Interactive Media, Artificial Intelligence & Machine Learning · Depth: Fundamental Awareness, quick

Summary

Microsoft announced significant price increases for its Xbox game consoles, effective August 1, following Apple's recent hardware price hikes. The company is also discontinuing its 2TB model. The Xbox Series S 512GB will rise from \$399 to \$499, while the 1TB version increases from \$449 to \$599. The Xbox Series X 1TB Digital will go from \$599 to \$750, and the 1TB Disc model from \$649 to \$800. Microsoft attributes these changes to memory and console storage costs, which are 2.5x higher and projected to double by fall 2027. This marks the second Xbox price increase in less than a year. Both Microsoft and Apple cite soaring memory and storage costs, driven by unprecedented demand for AI infrastructure and data centers, as the primary cause for industry-wide price pressures on electronics. Microsoft plans to mitigate the impact by expanding financing options and offering previously played consoles at lower prices. Sony also raised PS5 prices, with the digital version now at \$599.

Key takeaway

For consumers considering new electronics purchases, anticipate continued price increases across various devices, including gaming consoles and computers. The AI boom's impact on memory and storage costs is a significant factor. You should evaluate financing options like 0% APR programs or consider refurbished hardware, as companies like Microsoft are expanding these lower-cost alternatives to manage the rising expenses.

Key insights

The surging demand for AI infrastructure is directly escalating memory and storage costs, consequently raising consumer electronics prices globally.

Principles

• AI infrastructure demand directly impacts consumer hardware pricing.
• Supply chain tightening from AI investments drives broad electronics cost increases.

In practice

• Offer financing options to mitigate consumer price increases.
• Explore programs for previously played hardware to provide lower-cost access.

Topics

• Xbox Pricing
• AI Infrastructure
• Memory Costs
• Storage Costs
• Consumer Electronics
• Supply Chain

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Editorial summary, takeaway, and curation by AIssential. Original article published by TechCrunch.