Microsoft lifts price of Xbox consoles due to soaring component costs

hours later Apple Price increases for MacBooks and iPads announced, Microsoft Consumers can also expect to pay more for Xbox gaming consoles due to rising component costs, he said.

Microsoft said on Thursday that starting Aug. 1, Xbox Series S consoles with 512 GB of storage will increase by $100 to about $500, while 1 TB models will increase by another $150. The entry-level Xbox Series X will now start at around $750.

“Last October, we increased the price of the XBOX console in the US by between $20 and $70,” the company said. blog post. “We were hopeful that another price increase would not be necessary and have spent the last few months working through options with suppliers.”

Microsoft said that “console storage and memory prices have increased more than 2.5 times and are expected to double by fall 2027.”

Like memory manufacturers Micron and SK Hynix have limited capacities, and they prioritize high-bandwidth memory for their AI infrastructure. Nvidiagraphics processing units. Manufacturers are increasing prices to meet increased demand, resulting in wider profit margins.

This situation challenges consumers who want to buy devices such as smartphones, tablets and computers. Apple’s announcement Thursday came after CEO Tim Cook told The Wall Street Journal that price increases were becoming inevitable.

“The entire consumer electronics industry is struggling with the current component crisis, but the effects are especially hard on consoles,” the Xbox unit said in the post. “Unlike phones, computers, speakers, and other consumer devices, consoles are generally not sold at a profit, but instead are sold for less than the cost of production.”

Microsoft said that the 2TB Xbox Series X, introduced in 2024, will no longer be available for sale.

Microsoft shares fell 3.5% on Thursday. Apple’s shares fell 6.1 percent.

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