Microsoft announced Thursday that it will raise the global price of its Xbox consoles by $100 to $150, effective 1 August, due to soaring storage and memory costs driven by AI demand.
Note: Euro figures are approximate conversions based on current exchange rates and do not represent official company pricing.
In the United States, the entry‑level Series S will rise to $500 (≈ €440) this summer, while the premium Series X will be priced up to $800 (≈ €705). European pricing has not yet been disclosed, though the Series X currently retails for around €600.
The 2 TB model will be discontinued.
This marks the third price adjustment for Xbox since a global increase in May 2025 and a U.S.-specific hike in October.
Electronics manufacturers across the board are feeling the strain of higher component costs. Recent price moves by Sony and Nintendo reflect the same trend, and Apple announced substantial Mac and iPad price hikes on Thursday.
Apple begins AI‑driven price rises after earlier warning
Apple followed through on chief executive Tim Cook’s warning that price increases have become “unavoidable,” announcing higher prices for Macs and iPads as AI‑driven demand for memory chips pushes costs upward.
The company described the surge in demand as an “unprecedented challenge” for the consumer‑electronics sector.
In a statement cited by the Associated Press, Apple said: “The rapid expansion of AI data centres has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this magnitude, this quickly.”
The entry‑level MacBook Neo will cost $100 (≈ €90) more, while the 512 GB MacBook Air and the 256 GB Wi‑Fi iPad Pro will each increase by $200 (≈ €175). The 1 TB MacBook Pro will rise by $300 (≈ €265), and the 128 GB iPad Air will be $150 (≈ €130) pricier.
Analysts anticipate further increases for iPhone models later this year.
IDC analyst Nabila Popal noted that the latest hikes exceed expectations, suggesting iPhone Pro and Pro Max prices could climb by as much as $200 (≈ €175). “I think the days of $50 price increases are over,” she said.
Apple reiterated in its statement that it had shielded customers from component cost rises until now, but “we have now reached a point where we need to begin raising prices on a number of products, including today’s increases for iPads and Macs. We know this is not welcome news, and we are working tirelessly to find solutions.”
Shares of Apple slipped $13.29, or 4.5 %, to $279.88 in Thursday afternoon trading.
AI boom reshapes the economics of consumer electronics
The accelerated construction of AI‑training data centres has driven memory and storage chip prices to more than double, with another doubling expected by late 2027, according to Microsoft.
These components, supplied by South Korean giants Samsung and SK Hynix and U.S. firm Micron, have faced prolonged shortages, further inflating costs.
Unlike smartphones or PCs, gaming consoles are typically sold at a loss, making price adjustments particularly sensitive for manufacturers.
Sony raised the European price of the PlayStation 5 by €100 in early April, bringing the standard model to €650.
Nintendo will increase the price of the Switch 2 by more than 6 % from 1 September.
Valve’s new Steam Machine launched at over $1,000 (≈ €880) for the base version, exceeding many expectations.
Microsoft’s gaming division, which contributed roughly 8 % of fiscal‑year‑2025 revenue, underwent a major restructuring in February after a decline in Xbox sales and under‑whelming new title performance.
