Xbox: Microsoft adjusts its prices under component cost pressure

Buying a game console has never been a bet on raw material prices. Yet that is what the Xbox Series X and Series S are becoming. On June 25, Microsoft confirmed a global price increase effective August 1, 2026, the third in just over a year. The cause can be summed up in two words: memory and storage, whose prices are soaring under pressure from data centers dedicated to artificial intelligence.

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Details of the price increase

The mechanism is simple to summarize. Models equipped with 512 GB of storage are going up by 100 dollars, or about 90 euros, and those with 1 TB are rising by 150 dollars, about 140 euros. At the same time, Microsoft is discontinuing the Xbox Series X 2 TB, introduced in 2024. A model already sold for around 799.99 dollars would have crossed the 1,000-dollar mark after the increase, a threshold the manufacturer prefers to avoid by removing the SKU from the catalog. Remaining stock will be sold until depleted, with the purchase deadline set for July 31.

In the American market, where Microsoft provided precise figures, the pricing changes as follows:

The painful point of comparison: the Series X launched at 499.99 dollars in November 2020. Six years later, the same machine, with no major technical redesign, is listed 300 dollars above its launch price.

A component crisis fueled by AI

Microsoft is not hiding the source of the problem. The price of storage and memory intended for consoles has multiplied by more than 2.5 since the previous increase in October 2025, and the manufacturer expects another doubling by fall 2027. These components have precise technical names: DRAM for memory, NAND flash memory for storage. These are exactly the building blocks being snapped up by data center operators.

Three manufacturers, Samsung, SK Hynix, and Micron, alone produce more than 90% of the world’s DRAM. Since 2025, they have been redirecting their lines toward high-bandwidth memory (HBM), the type required by artificial intelligence accelerators. Every silicon wafer devoted to this premium memory is one less wafer for consumer chips. The result is clear in the projections: according to several analysis firms, data centers could absorb nearly 70% of global memory production in 2026, compared with 20 to 30% in 2022. A rapid reversal that manufacturers will not offset anytime soon. Micron’s and SK Hynix’s new plants will not reach significant volume until 2027, and Micron’s CEO expects a return to normal only in 2028.

Why consoles are hit harder by the shock

One detail of the business model explains the particular sensitivity of consoles. Unlike a smartphone or a computer, a console is often sold at a price below its manufacturing cost, at least during the first years. The manufacturer makes up for it through games, subscriptions, and services. As long as components become cheaper over time, the machine eventually becomes profitable. That logic collapses when memory doubles in price over a few quarters. Microsoft no longer has the margin needed to absorb the increase without passing it on, whereas a PC manufacturer, already selling with a positive margin, can smooth out part of the extra cost.

European prices still pending

For France and Europe, caution is required regarding the exact amounts. Microsoft confirmed the global nature of the increase, but had not published a new euro price list at the time of the announcement. The Xbox Series X is still listed at around 599.99 euros in mainland France.

Two interpretations coexist, and it is better to distinguish them clearly. A direct conversion of the American prices would suggest a Series X close to 800 euros and a Series S 1 TB at around 600 euros. Recent history, however, calls for nuance: during the global increase in May 2025, Europe saw a more limited rise than the United States, with the Series X moving to 599.99 euros, or 50 euros more, while the American market absorbed 100 dollars. If Microsoft repeats this pattern, the European increase could remain between 50 and 100 euros depending on the configurations. Nothing has been decided, and only the manufacturer’s official communication will set the actual prices.

A movement that goes beyond Xbox alone

The Xbox announcement is part of a wave affecting the entire sector. On the same June 25, Apple raised the prices of its Macs and iPads. Sony has increased the PlayStation 5 several times, bringing the PS5 in the United States to 649.99 dollars, the Digital version to 599.99 dollars, and the PS5 Pro to 899.99 dollars, about 830 euros. Nintendo launched the Switch 2 at 499 euros, above initial expectations. On the PC side, Dell, Lenovo, and HP warned of increases of 15 to 20% over the second half of 2026.

The coming period looks set to remain tense. Several industry sources mention a production cost for the future PlayStation 6 approaching 1,000 dollars, or nearly 920 euros, versus an estimate of around 760 dollars not long ago. The calculation that assumed a console would mechanically become cheaper over the course of its generation no longer holds.

Measures to cushion the blow

Microsoft is accompanying the increase with several commercial measures. Interest-free installment payments are offered via the Microsoft Store, zero-interest financing over twelve months is planned with certain partners such as Amazon, and trade-in programs are expected to make it easier to buy second-hand consoles. The manufacturer is also highlighting its certified refurbished machines, up to 100 dollars below the recommended price. One caveat: Microsoft did not specify whether these offers will be available outside the United States, at least initially.

The internal context also weighs heavily. The announcement comes a few weeks before the close of Xbox’s fiscal year, while workforce reductions have been reported on the studio side. In its communication, Microsoft positions the Series S as the cheapest gateway to a packed release schedule, with Grand Theft Auto VI expected on November 19, 2026, alongside Call of Duty: Modern Warfare 4, Gears of War: E-Day, and Halo: Campaign Evolved.

Waiting no longer guarantees a good deal

For the French gamer, two habits are changing. The first concerns the purchase timeline: postponing the decision by a few months no longer means saving money, since the component trend is pointing upward at least until 2027. The second concerns the very place of the console in the landscape. At 800 dollars for a Series X with disc drive, the machine is approaching the price of an entry-level gaming PC, which reshuffles the cards for the price-performance ratio against direct competition.

One major unknown remains: the official European prices, which Microsoft has yet to reveal. Until they are set, the only certainty concerns the direction of the needle. It is rising, and memory is to blame.