The price adjustment impacts the 512-gigabyte models with a $100 increase, while 1-terabyte versions will see a $150 premium. Alongside the price hikes, Microsoft confirmed it will discontinue the 2-terabyte Xbox model. This decision follows a previous U.S. price adjustment last October, as the company struggles to maintain margins on consoles traditionally sold at a loss.
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Microsoft Raises Xbox Prices as Memory Costs Surge
Facing a volatile hardware market, Microsoft will hike prices on its Xbox consoles by up to $150 starting August 1. The company attributes the move to a sharp spike in storage and memory component costs, which have already more than doubled and are projected to climb further by 2027.
To mitigate the impact on consumers, Microsoft is expanding access to financing, including 0% APR options through Amazon for up to one year, and plans to introduce new resale programs for used hardware. The broader semiconductor shortage, driven by competing demand from artificial intelligence infrastructure, continues to strain the industry. Apple recently signaled similar pressures, raising prices on its Mac and iPad lines by as much as 25%.
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