Xbox Raises Console Prices Up To $150—Why AI Is To Blame
Xbox Raises Console Prices Up To $150—Why AI Is To Blame
Publish Date: 2026-06-25 15:19:00
Source Domain: www.forbes.com
- Price Increases: Xbox is raising the prices of its consoles for the second time in less than a year, with 512 GB models increasing by $100 and 1 TB models by $150.
- Effective Date: The global price hike will take effect starting August 1.
- Specific Models: The 512 GB Xbox Series S will rise from $399 to $499, while the 1 TB model will jump from $450 to $550. For the Series X, the 1 TB disc drive version will increase from $649 to $799.
- Business Model: Xbox notes that unlike other consumer devices, consoles are typically sold at a loss, which has exacerbated cost pressure due to price hikes in storage and memory.
- Industry Context: The entire consumer electronics industry, especially consoles, is facing a components crisis due to the AI boom which has diverted memory supply away from traditional consumer electronics.
- Background on Supply: Memory prices have surged with three major companies—Samsung, SK Hynix, and Micron Technology—at the forefront, but their stocks and supplies are being heavily redirected towards AI companies, leading to concerns about meeting future consumer demand.
- Impact Timeline: The 1 TB Series X will be $300 more expensive in August compared to its launch in 2020, a 60% increase.
