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

Microsoft has raised the price of its Xbox Series X console to £670, an increase of £170, due to rising costs associated with memory and storage chips. This represents a significant 43% rise from its previous price of £500. Similarly, the Xbox Series S console, which previously cost £300, is now priced at £430, a 43% increase. These price hikes are joining a trend seen across the tech industry, as companies like Sony also raised PlayStation 5 prices by £90 in March.

Microsoft had hoped to avoid further price increases, but attributed the need for these changes to the escalating cost of console storage and memory. In the United States, the basic Xbox consoles increased by $100 to $499, while consoles with more memory saw a $150 price hike to $749. This price surge is a response to the increased demand for RAM and graphics cards, driven by the need for these components in AI applications.

However, consumers have criticized the moves, with some viewing the new Xbox Series S price as "absolutely disgusting" and calling it "highway robbery for a console released six years ago." The price increases have sparked debate about the future of console gaming, with some predicting further hikes or a shift towards streaming services due to the rising hardware costs.

Microsoft's gaming division has also faced recent challenges, with the company announcing significant workforce reductions in July 2022.