Microsoft has announced that the Xbox Consoles will be getting a signifigant price rise, especially compared to previous price rises, which they are stating is due to the ongoing “Component Crisis.” The company stated in a blog post that, starting on August 1st, the price of Xbox Consoles will raise $100 for the 512GB Model and $150 for the 1TB model. The company additionally announced that the all-digital 2TB model will be fully discontinued.
Adjusted Cost Of Xbox Series Consoles:
- Xbox Series S 512GB: $499.99, previously $399.99
- Xbox Series S 1TB: $599.99, previously $429.99
- Xbox Series X 1TB Digital: $749.99, previously $599.99
- Xbox Series X 1TB: $799.99, previously $649.99
In this blog, Microsoft stated:
Last October, we increased Xbox console price by $20-$70 in the U.S. We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options. Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027.
The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles. Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make.
Alongside this raise, Microsoft pointed consumers to buy now, pay later options that will help break up the overall purchase, as well as interest-free financing. The company is also working with retailers to help reduce the cost of second-hand consoles, with Microsoft now offering ‘Certified Refurbished Consoles’ through the Microsoft Store for up to $100 off. They stated:
Players who are ready to upgrade or no longer use their console will be able to trade it in with participating retail partners for cash or store credit. Those consoles will then be made available at lower prices for players.
This news comes shortly after mega juggernaut Grand Theft Auto VI went up for preorder, something that analysts have stated would heavily drive sales of both the PlayStation 5 and Xbox Series, though there are questions as to whether either company will be able to meet the demand, with the AI bubble making it much harder to source parts, driving up prices in a large part. Both PlayStation 5 and Nintendo Switch 2 have seen recent price increases, with the upcoming Steam Machine also releasing at $1049 for the base version.
Xbox itself has been in the process of what the new CEO, Asha Sharma, has referred to as a “Reset”. Last week, the CEO sent out a memo outlining the company’s decline in sales year over year, as well as casting some doubt on the future of more artistic studios on the Xbox Games Studio banner, such as Ninja Theory, Cumpulsion Games, and Double Fine.
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