Just just a few hours after Apple announced price increases across its hardware lineup, Microsoft revealed that Xbox game consoles are also getting dearer. As well as, the corporate announced that it’s discontinuing its 2TB model.
Starting August 1, Xbox console prices will increase worldwide. The 512GB models will cost $100 more, while the 1TB versions are set to rise by $150.
Price changes are as follows:
- Xbox Series S 512GB is increasing from $399 to $499.
- Xbox Series S 1TB is increasing from $449 to $599.
- Xbox Series X 1TB Digital is increasing from $599 to $750.
- Xbox Series X 1TB Disc is increasing from $649 to $800.
The corporate says the increases are being driven by rising memory and console storage prices, with costs greater than 2.5x higher than previous levels. Microsoft warned that these prices could double by the autumn of 2027. The move comes lower than a 12 months after the corporate raised Xbox prices within the U.S. last October.
The announcement follows Apple’s own round of price hikes affecting products akin to Macs and iPads. Apple cited the identical industry-wide pressures, pointing to soaring memory and storage costs fueled by unprecedented demand for AI infrastructure and data centers.
Together, the back-to-back announcements underscore how much the AI boom is impacting the worth of on a regular basis electronics. As technology corporations invest heavily in larger AI systems, demand for advanced memory and storage chips has surged, tightening supply chains and pushing costs higher across the industry.
Microsoft attempted to melt the blow by highlighting financing options and plans to expand access to lower-cost hardware. In its announcement, the corporate said it’s “working on recent programs to offer previously played consoles at lower prices.”
Customers purchasing eligible Xbox hardware through Microsoft Stores may have greater access to purchase now, pay later programs, while Amazon shoppers can qualify for as much as 12 months of 0% APR financing on eligible purchases.
Moreover, Microsoft now joins Sony in asking gamers to pay more, with PS5 digital now costing significantly greater than it did at launch, rising from $499 to $599. Meanwhile, Nintendo’s increase for the Switch 2 has been comparatively modest, however the rival may face pressure to lift prices further in the longer term.
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