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Xbox follows Apple with price increases

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Why This Matters

The recent price hikes for Xbox consoles mirror industry-wide pressures driven by rising memory and storage costs, largely fueled by the AI boom. This trend highlights how technological advancements and increased demand for AI infrastructure are impacting consumer electronics pricing, potentially shaping future affordability and access. Consumers and industry stakeholders should anticipate ongoing cost adjustments as supply chain dynamics evolve.

Key Takeaways

Just a few hours after Apple announced price increases across its hardware lineup, Microsoft revealed that Xbox game consoles are also getting more expensive. In addition, the company announced that it’s discontinuing its 2TB model.

Starting August 1, Xbox console prices will increase worldwide. The 512GB models will cost $100 more, while the 1TB versions are set to rise by $150.

Price changes are as follows:

Xbox Series S 512GB is increasing from $399 to $499.

Xbox Series S 1TB is increasing from $449 to $599.

Xbox Series X 1TB Digital is increasing from $599 to $750.

Xbox Series X 1TB Disc is increasing from $649 to $800.

The company says the increases are being driven by rising memory and console storage prices, with costs more than 2.5x higher than previous levels. Microsoft warned that these prices could double by the fall of 2027. The move comes less than a year after the company raised Xbox prices in the U.S. last October.

The announcement follows Apple’s own round of price hikes affecting products such as Macs and iPads. Apple cited the same industry-wide pressures, pointing to soaring memory and storage costs fueled by unprecedented demand for AI infrastructure and data centers.

Together, the back-to-back announcements underscore how much the AI boom is impacting the price of everyday electronics. As technology companies invest heavily in larger AI systems, demand for advanced memory and storage chips has surged, tightening supply chains and pushing costs higher across the industry.

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