Microsoft is reportedly losing money on every Xbox Series X|S console it sells, as soaring RAM prices driven by AI data-centre demand push component costs above the consoles' retail prices. The situation matters because it signals how the broader AI boom is disrupting consumer hardware markets, with the financial strain likely to be passed on to gamers through higher prices rather than absorbed by manufacturers.

According to sources cited by Windows Central's Jez Corden, Microsoft is losing around $150 on every recent Xbox Series X|S sale, despite earlier price increases. From 1 August, all Xbox Series X|S models will rise by a further $100 in an attempt to offset these losses. The report also speculates that Sony and Nintendo face similar cost pressures, and raises questions about how this will affect next-generation consoles, such as Microsoft's rumoured Project Helix, expected around 2027-2028.