Xbox price increase: Microsoft hit by the RAM crisis

Microsoft has announced a major increase in the price of its Xbox console amid a crisis. The move sits in complete opposition to the brand’s recent messaging.

Will gaming require an empty wallet? Quite possibly. Microsoft has confirmed that the price of its Xbox console will rise from 1 August. It is a dramatic increase-and the third in six months.

Xbox console prices rise sharply from 1 August

The price of the machines is climbing steeply. Versions with 512 GB of storage will cost $100 more, while 1 TB models will increase by $150. Both consoles are affected: the Xbox Series S and Xbox Series X. From 1 August, the 512 GB Xbox Series S, positioned by the manufacturer as its “budget” console, will retail for $500, while the 1 TB Xbox Series X will be priced at $800. Meanwhile, the 2 TB version is being withdrawn from sale.

No euro prices have yet been confirmed, although the increase is expected to be broadly similar as this is a worldwide measure. The Xbox Series X, currently priced at €549, should therefore go on sale for €700.

Microsoft hit hard by the RAM crisis

The explanation for this extraordinary rise is not difficult to find: the shortage of RAM affecting the technology sector worldwide. Microsoft openly acknowledges the issue in its statement:

“Last October, we increased the price of Xbox consoles by between $20 and $70 in the United States. We had hoped that another increase would not be necessary, and we have spent recent months working with our suppliers to find solutions. Unfortunately, the cost of console storage and memory has more than doubled, and we expect it to double again by autumn 2027. The entire consumer electronics industry is dealing with the current component shortage, but consoles are suffering particularly heavily from its effects.”

The worst possible time for Xbox price increases

Microsoft’s Xbox division has been struggling for several years. Its new head, Asha Sharma, is aiming to give it fresh momentum. The situation had begun reasonably well, with the Game Pass price reduction followed by the Xbox Game Showcase, which unveiled appealing exclusive games. Yet that positive momentum was swiftly shattered by announcements of widespread redundancies and studio closures. Players have voiced their anger, condemning what they see as harsh management practices.

More troubling still, some have criticised Asha Sharma’s unconvincing communications. Only a few days ago, speaking to Entertainment Weekly, she said that “video games are unaffordable in many cases, in terms of how we have traditionally thought about them”. Her comments therefore suggested that she was looking for solutions. That has not gone to plan. Xbox’s attempted rehabilitation is increasingly resembling a highly publicised shipwreck, both in its management and its communications.

Naturally, Xbox is not responsible for the RAM crisis, and every manufacturer is raising its prices, including Sony and Apple. However, its situation is under particularly close scrutiny, as the brand has reached a pivotal point in its history. There is now ample reason to be sceptical of the reassuring statements and contradictory claims.