Microsoft has implemented substantial price increases for its Xbox Series S and Series X consoles across Europe. The price hike, which varies by region but is generally between 25% and 30%, sees some models of the Series S now costing more than the Series X did at its initial launch. For example, the 512GB Xbox Series S has risen to €499.99 from €349.99 in Germany, and £429.99 from £299.99 in the UK. Similarly, the 1TB model of the Series S now retails for €599.99, exceeding the original launch price of the 1TB Series X.
These adjustments follow earlier price increases announced by Microsoft for the US market, which saw a $100-$150 rise across consoles. The European increases appear to be even more significant in some cases, with the UK seeing a £130, approximately $175, jump for the 512GB Series S. Microsoft had previously cited component costs as a reason for discontinuing the 2TB model of the Series S in June. The company's latest earnings call revealed a 29% decrease in Xbox hardware revenue, attributed to lower console sales volume.
The current global memory supply crisis, exacerbated by AI growth, is a significant factor contributing to these increased hardware costs. Manufacturers like Samsung have warned of continued supply shortages, suggesting that elevated prices may persist. This situation is expected to impact not only current console generations but also potentially the next wave of consoles, anticipated around 2027 or 2028, as companies may need to absorb significant memory costs even while aiming for profitability through software sales.