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Or sign-in if you have an account.Microsoft said it has taken steps to reduce the sticker shock. These include buy now, pay later programs for Xbox consoles at its own stores and interest-free financing plans at Amazon.com. Photo by JUNG YEON-JE/AFP via Getty ImagesMicrosoft Corp. announced a third substantial price increase for the company’s current-generation Xbox video-game consoles in a glaring example of the component shortage crisis that has universally driven up the cost of consumer tech products.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorStarting Aug. 1, Xbox consoles will increase by US$100 for models with 512 gigabytes of storage and US$150 for one terabyte versions. Microsoft is also phasing out its previous highest storage tier of two terabytes.“We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options,” the company wrote on its Xbox news blog on Thursday. “Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027.” Microsoft said that unlike other consumer products, game consoles are typically sold for less than they cost to make.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againEarlier on Thursday, Apple Inc. hiked prices across most of its products (but not the iPhone line), attributing the changes to unprecedented demand for memory, solid state drives and other components that are being snapped up by artificial intelligence companies.Gaming hardware in particular has been rocked by price increases over the last two years. Microsoft first hiked the cost of its Xbox Series X and Series S consoles in May 2025, then again last October. Under the new pricing, the regular Xbox Series X will sell for US$800, a jump of US$300 compared to its original cost in 2020. Sony Group Corp. has also raised its PlayStation pricing more than once, and Nintendo Co.’s Switch 2 will be bumped to a higher US$500 suggested retail price in September.On Monday, Valve Corp. announced that its long-anticipated Steam Machine console would cost over US$1,000, acknowledging that the price it had originally planned to sell the product for was “no longer viable.”Microsoft has trailed rivals Sony and Nintendo in gaming hardware sales and revenue over the last decade. Microsoft Gaming chief executive Asha Sharma, who was thrust into the top job in February, is planning an overhaul and major job cuts across the unit to help get the business on a better trajectory.Sharma told Xbox employees in an email earlier this month that by the 2027 holiday season, she expects the company to be paying five times as much for storage and memory components as it did in 2024.The ongoing component shortage shows no signs of easing and has cast uncertainty around Microsoft’s next-generation console, currently referred to as Project Helix, and when it might reach consumers.“We are working very hard to rethink everything that we can about Helix, which is a console we are committed to shipping,” Xbox chief strategy officer Matthew Ball said in an interview earlier this month at The Game Business Live conference.Among other moves, Sharma has tried to win back enthusiasm among gamers by making Xbox-exclusive titles a priority again, but the consoles that play those games are now more expensive than ever.In its blog post, Microsoft said it has taken steps to reduce the sticker shock. These include buy now, pay later programs for Xbox consoles at its own stores and interest-free financing plans at Amazon.com. The company is also working with retailers on new programs to sell used consoles at lower prices. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.