Microsoft has increased Xbox console prices for the second time in less than a year, with customers in the United Kingdom facing the biggest price hikes.
In the United Kingdom, the Xbox Series X with a disc drive now costs £670, up from £500. The standard Xbox Series S now costs £430, up from £300, marking a 43% price increase for a console first released six years ago.
In the United States, the price increases were smaller. Entry-level Xbox consoles now cost $499 after a $100 increase, while higher-storage models now cost $749 after a $150 increase. In Europe, the price of the Xbox Series S with additional storage has increased by about €200.
Microsoft said the cost of console memory and storage has risen by more than 2.5 times, with prices expected to double again by fall 2027. The company said game consoles are typically sold at a loss, unlike smartphones and laptops, leaving it with little room to absorb higher component costs without passing them on to customers.
In June, Microsoft said it hoped another price increase would not be necessary after raising Xbox prices in the United States last October.
The price of RAM, once an inexpensive computer component, has increased sharply because of growing demand from the artificial intelligence industry. Graphics card prices have also risen for the same reason.
Microsoft has budgeted about $190 billion for 2026, with much of that spending focused on artificial intelligence. The company has previously said that about $25 billion of its additional spending is linked to higher memory and semiconductor costs.
Microsoft is also reportedly negotiating long-term agreements to secure memory supplies, which could give it an advantage over console manufacturers when purchasing computer chips. As a result, the company is both affected by rising chip prices and contributing to market pressure.
Sony raised the price of the PlayStation 5 by £90 in March, while Valve’s Steam Machine launched at a much higher price than expected for the same reason.
The latest Xbox price increases have already drawn criticism. A Windows Central editor recently warned that the latest price hikes may not be the last.
