- https://www.easterneye.biz/xbox-game-pass-loses-12-games-next-update/Xbox console prices increased across the UK and Europe from August 1.
- Microsoft says memory and storage costs have risen more than 2.5 times.
- The company is also discontinuing its 2TB Xbox model while expanding financing and trade-in programmes.
Buying an Xbox in the UK has become significantly more expensive from Saturday (1), with Microsoft introducing another round of price increases across its console range and blaming sharply higher component costs for the decision.
Unlike most consumer electronics, which usually become cheaper as they age, several Xbox models are now selling for substantially more than they did at launch. Microsoft says the increase reflects soaring prices for memory and storage chips, costs that it expects to continue rising over the next year.
The company said it had spent months working with suppliers in an effort to avoid another increase but ultimately concluded it was unavoidable. According to Microsoft, the cost of storage and memory components used in Xbox consoles has increased by more than 2.5 times, with further increases expected before the end of 2027.
More expensive consoles and fewer choices
The latest pricing affects several Xbox models. In the UK, the Xbox Series X with a disc drive now costs £670, up from £500, while the Xbox Series S now starts at £430, compared with its previous price of £300.
Globally, Microsoft has increased the price of 512GB Xbox consoles by $100 and 1TB models by $150. The company has also confirmed it is discontinuing its 2TB Xbox model as part of a wider refresh of the product line-up.
Microsoft argues the wider consumer electronics industry is facing mounting pressure from rising chip costs, but says gaming consoles are particularly exposed because they have traditionally been sold at slim margins or below manufacturing cost.
The price increases follow similar moves across the gaming industry. Sony raised PlayStation 5 prices earlier this year, while rising demand for memory chips and graphics processors from artificial intelligence companies has also pushed up component prices across the technology sector.
To soften the impact, Microsoft is introducing additional financing options, including Buy Now, Pay Later plans, 0 per cent financing on eligible purchases through participating retailers, expanded trade-in schemes for used Xbox consoles and certified refurbished devices offering discounts of up to $100.
The latest price rise also comes during a challenging period for Microsoft's gaming business. The company recently announced thousands of job cuts across its gaming division as part of what executives described as the biggest restructuring in Xbox's history, while gaming revenue has also come under pressure in recent quarters.
