Xbox Series X price hiked by £170 due to rising memory chip costs

Microsoft has raised the price of Xbox consoles globally, attributing the increase to the escalating costs of memory and storage chips. The premium Series X console, which previously retailed for £500, is now priced at £670. Simultaneously, the standard Xbox Series S console, previously available for £300, is now £430, marking a significant 43% rise in price.

This move places Microsoft among numerous tech companies that have informed consumers about the need to raise prices due to soaring component costs. In March, Sony also increased the price of its PlayStation 5 by £90. In June, Microsoft had anticipated that another price increase would not be necessary, but the rising costs of console storage and memory necessitated the price hike.

In the United States, basic consoles increased by $100 to $499, while consoles with more memory saw a $150 increase to $749. Similar price hikes have been reported in the EU, with a Series S console with additional storage costing approximately €200 more than before. Sony's competitor, Valve, also increased the cost of its PC-console hybrid.

Both companies cited mounting costs for hardware and storage components. Critics have lambasted the price increases, calling them "absolutely disgusting" and "highway robbery" for a console released six years ago. The surge in prices could potentially lead to further hikes, according to some. Windows Central editor Jez Corden expressed concern over the broad price increases.

Amazon's gaming boss recently suggested that rising hardware costs might prompt more people to stream games rather than use consoles. Xbox has also faced its own challenges, with Microsoft recently announcing a significant restructuring of its Xbox workforce, resulting in 3,200 job cuts.