Microsoft introduced Thursday that it’s going to elevate the worth of its Xbox online game console by $100 to $150 worldwide beginning August 1, citing rising storage and reminiscence prices as a consequence of AI-related calls for.
Editor’s be aware: Euro figures are approximate conversion values based mostly on at this time’s alternate charges and don’t replicate the corporate’s official worth.
Within the US, the most cost effective Xbox, the Collection S, will enhance in worth this summer season to $500 (about 440 euros), whereas the Collection X will price $800 (about 705 euros). The corporate has not but introduced pricing in Europe, with the Collection X presently promoting for round 600 euros.
The 2TB mannequin can be discontinued.
That is the third Xbox worth enhance, following a world worth enhance in Might 2025 and a U.S.-only worth enhance in October.
All dwelling equipment producers are being affected by rising element prices. Sony and Nintendo have additionally elevated the costs of their gaming consoles in current months, and Apple on Thursday introduced vital worth hikes for Macs and iPads.
Apple begins AI-driven worth hikes after receiving advance warning
Apple on Thursday adopted CEO Tim Prepare dinner’s warning earlier this month. Worth will increase have grow to be ‘inevitable’introduced worth hikes for Macs and iPads as demand for reminiscence chips from AI continues to drive up prices.
In an announcement Thursday, the Cupertino-based firm mentioned the surge in demand is an “unprecedented problem” for the buyer electronics business.
“The speedy growth of AI information facilities has led to an uncommon surge in demand for reminiscence and storage, and we now have by no means seen element costs rise this shortly,” Apple mentioned in a written assertion cited by the Related Press.
The brand new entry-level MacBook Neo prices $100 (about 90 euros) extra, whereas the 512GB MacBook Air and 256GB iPad Professional Wi-Fi every price $200 (about 175 euros) extra. The 1TB MacBook Professional will price $300 (about 265 euros) extra, and the 128GB iPad Air will price a further $150 (about 130 euros).
Analysts anticipate iPhone costs to rise within the second half of this 12 months.
IDC analyst Nabila Popal mentioned the worth enhance was bigger than anticipated and will imply iPhone costs would additionally rise considerably greater than anticipated, probably by as much as $200 (about 175 euros) for the iPhone Professional and Professional Max fashions.
“I feel the times of $50 worth will increase are over,” she says.
In a written assertion cited by the Related Press, Apple mentioned that whereas it has historically protected prospects from hovering element costs, “we now have reached the purpose the place we should start elevating costs on a lot of our merchandise, together with at this time’s worth hikes for iPads and Macs. We all know this isn’t welcome information, and we’re working tirelessly to discover a answer.”
Apple shares fell $13.29, or 4.5%, to $279.88 in Thursday afternoon buying and selling.
The AI increase will change the economics of shopper electronics
Development of information facilities for AI coaching and purposes is accelerating, driving up the price of reminiscence and storage chips. These elements are utilized in just about all digital units.
The market, dominated by main firms akin to South Korea’s Samsung Electronics and SK Hynix and America’s Micron, has been experiencing extreme provide shortages for months, driving up costs.
Microsoft mentioned Thursday that the price of storage and reminiscence chips has greater than doubled and is anticipated to double once more by the tip of 2027.
The Redmond-based firm additionally famous that, in contrast to cell telephones and computer systems, gaming consoles are “usually not offered at a revenue, however quite at a worth that’s lower than the price of manufacturing.”
Japanese rival Sony elevated the worth of the PlayStation 5 in Europe by 100 euros in early April, bringing the usual model to 650 euros.
Nintendo has introduced that it’s going to enhance the worth of the Swap 2 by greater than 6% beginning September 1st. On Monday, US-based firm Valve launched its new Steam Machine for over $1,000 (about 880 euros) for the essential model, which was costlier than anticipated.
Microsoft, the third-largest console maker after Sony and Nintendo, lowered Xbox Sport Cross subscription costs in April, believing gamers had been paying an excessive amount of.
Microsoft’s gaming division, which accounted for about 8% of its fiscal 2025 income, underwent a significant restructuring in February, notably after declining income from Xbox gross sales and disappointing efficiency from new video games.
