After Apple Microsoft Hikes Xbox Console Prices Worldwide

The company said the increase is driven by rising memory and storage costs, while also confirming that it will discontinue the 2TB Xbox model.

Under the revised pricing, the Xbox Series S 512GB will rise from $399 to $499, while the 1TB variant will increase from $499 to $599. The Xbox Series X 1TB Digital will cost $750 instead of $599, and the 1TB Disc version will increase from $649 to $800.

According to Microsoft, memory and console storage costs are now more than 2.5 times higher than previous levels. The company also warned that component prices could continue to rise, potentially doubling by the fall of 2027. The latest revision comes less than a year after Microsoft increased Xbox prices in the US.

The announcement follows Apple’s decision to raise prices across several hardware products, including Macs and iPads. Apple also attributed the move to higher memory and storage costs, which have increased amid growing demand for AI infrastructure and data centres.

Meanwhile, Microsoft said it is expanding financing options to make Xbox hardware more accessible. Customers purchasing eligible devices through Microsoft Stores will have wider access to buy now, pay later programmes, while eligible Amazon buyers can avail up to 12 months of 0 percent APR financing. The company also said it is working on programmes to offer previously owned Xbox consoles at a lower price.

The back-to-back announcements underscore the broader impact of the AI boom on consumer electronics. As technology companies invest heavily in AI systems, demand for advanced memory and storage chips has surged, tightening the supply and increasing manufacturing costs across the industry.

(This article has been curated by Shivani P Menon, who is an intern with The Indian Express)