Microsoft is raising prices for its Xbox consoles, as global shortages of memory storage chips continue to strain supplies for consumer tech.

An explosion in data centers for artificial intelligence technology has created unprecedented demand for memory hardware across the technology sector, and the generation of AI content has had a similar effect on the market for graphics cards. In a June 25 blog post, Xbox estimated that console storage and memory prices have increased by more than two-and-a-half times since October 2025, with another doubling expected by the fall of 2027. 

"The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles," Xbox explained. "Unlike phones, computers, speakers and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make." That's largely because console sellers rely more on money from game sales, platform subscriptions, accessories and digital storefront purchases inside of games themselves.

According to BBC News, the premium Series X console with a disc drive will see its price rise in the United Kingdom from £500 ($670) to £670, while the baseline Xbox Series S console will go from £300 to £430. In the U.S., basic console prices have also risen from $399 to $499, while the premium offering has gone from $599 to $749. The Series S console saw its price bump up by €200 ($230) in the European Union as well.