Xbox and Apple Raise Prices Amid Global Chip Shortage
Microsoft is increasing Xbox console prices globally from August 1, citing rising memory and storage costs. This follows similar price hikes by Apple for its hardware, with both companies attributing the increases to surging component prices driven by AI infrastructure demand. The company is also discontinuing its 2TB Xbox model.
Key points
- Microsoft is raising prices on all Xbox console models worldwide, effective August 1, and discontinuing the 2TB version.
- The 512GB Xbox Series S will increase by $100 to $500, while 1TB models will rise by $150, with the Xbox Series X reaching $800.
- Microsoft states these price hikes are due to memory and storage costs more than doubling, with expectations of further increases.
- This decision mirrors recent price adjustments by Apple across its Mac and iPad lines, also attributed to rising component costs.
- Both companies point to unprecedented demand for chips powering AI data centers as a primary driver of the global component price surge.
Microsoft has announced significant price increases for its Xbox gaming consoles, set to take effect globally on August 1. This marks the second price adjustment for Xbox consoles in less than a year, with the company citing escalating costs for memory and storage components. The 512GB Xbox Series S will see a $100 increase, bringing its price to $500, while all 1TB models will become $150 more expensive, with the Xbox Series X disc version reaching $800.
These increases follow a similar move by Apple, which recently raised prices on various Mac and iPad models. Both tech giants have attributed these price adjustments to an "unprecedented challenge" in the electronics industry. They point to a "component crisis" driven by an "extraordinary surge" in demand for chips essential for powering artificial intelligence infrastructure and data centers, which has significantly tightened supply chains and driven up costs.
Microsoft also confirmed it will discontinue the 2TB Xbox Series X model. The company indicated that component costs have already more than doubled and warned that prices could potentially double again by the fall of 2027. This situation highlights the widespread impact of the global AI boom on consumer electronics pricing.
Sources
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