Microsoft Corp (NASDAQ:MSFT) has raised Xbox, saying soaring memory costs fueled by the AI boom are making gaming hardware significantly more expensive.
Microsoft Cites AI-Driven Memory Crunch Behind Latest Xbox Price Hike On Thursday, Microsoft announced that Xbox Series X and Series S consoles will become more expensive starting Aug. 1.
In a blog post, the company said it had worked with suppliers for months in an effort to avoid another increase but ultimately couldn't absorb higher component costs.
"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.
Alongside the Xbox price hike, Microsoft unveiled buy now, pay later and zero-interest financing options, describing the programs as a way to make Xbox consoles "more accessible" despite rising prices.
