Microsoft Hikes Xbox Prices Amid Rising Costs

Microsoft is raising Xbox Series S and X prices by up to $150 on August 1 as component costs for memory and storage surge over 700 percent.

Starting Saturday, August 1, Microsoft will increase the price of the Xbox Series S by $100 and the Xbox Series X by $150. Despite these hikes, CEO Asha Sharma confirmed the company continues to lose money on every console sold, driven by memory and storage component costs that have spiked more than 700 percent. Sharma anticipates these costs will double again by Fall 2027. Looking ahead, Microsoft is developing Project Helix, an upcoming console that could be priced over $1,000. Ecosystem data shows 75 percent of Xbox Ally owners subscribe to Game Pass Ultimate or PC Game Pass. While 25 percent of Ally users with an Xbox console made purchases in the PC ecosystem, only two percent of those without a console did the same. Microsoft will remain in a deficit per unit even after the August price adjustments take effect.