Microsoft Xbox: Console prices surge on August 1st amid component crisis

After Sony and Nintendo, it's Microsoft's turn to announce price increases for its consoles. The "Rammageddon" has spared no one. Microsoft is the last of the three major console manufacturers to raise the price of its Xbox consoles, in response to the skyrocketing prices of memory chips, which are being snapped up by data centers involved in artificial intelligence. A price increase of $100 to $150 and the end of the 2TB model. The PlayStation 5 saw a price increase last April, the Switch 2 will follow in September, and Xbox consoles will also be affected starting August 1st, worldwide. If you were hesitating, now is the time to buy an Xbox before the price of the machines increases by $100 for the 512GB models and $150 for the 1TB versions. As for the 2TB model, it will simply be withdrawn from sale. Microsoft has not yet provided the equivalent in euros, but a direct conversion is expected, namely an increase of €100 and €150 respectively. Selling at a loss and exploding storage costs, a double whammy… “We were hoping that another price increase wouldn’t be necessary, and we’ve spent the last few months working with our suppliers on different options,” Xbox said in a statement. “Unfortunately, storage and memory prices for consoles have increased more than 2.5 times, and we expect them to double again by fall 2027. The entire consumer electronics industry is facing the current component crisis, but the effects are particularly severe for consoles.” Unlike phones, computers, speakers, and other consumer devices, consoles are generally not sold with a profit margin, but rather at a price lower than their manufacturing cost.