Microsoft confirms increased Xbox prices in the UK and Europe

Microsoft has announced price increases for Xbox consoles in the UK and Europe, effective following additional global price hikes in late June. The company attributes the price increases to rising costs for storage and memory. Microsoft has also discontinued the 2TB model. During a recent blog post, the company stated that storage and memory prices have increased by over 2.5 times, and expect another doubling by fall 2027.

The global components crisis is affecting the entire consumer electronics industry, with consoles particularly hard-hit due to the fact they are typically sold at a loss rather than for a profit. Following the June price hike announcement, Xbox underwent significant restructuring, including layoffs impacting 3,200 employees, the divestment of five studios, and a $1.7 billion decline in Xbox revenue in 2026.

Xbox hardware sales dropped 29% year-on-year due to lower console sales. In response, Xbox CEO Asha Sharma emphasized that the company will not rely on past successes or be held back by past failures. Sharma stated that Xbox expects to return to growth by the end of 2027. During the same blog post, Microsoft CEO Satya Nadella highlighted that Xbox leadership is making necessary decisions across the company's content portfolio, platform, and operations to reset the business for long-term growth.

Nadella stated that the company has the best intellectual property in the industry and talented studios worldwide, and believes they can bring these strengths together to achieve growth.