Xbox prices are increasing by up to €200 or £170
Microsoft has confirmed steep price increases for Xbox Series X and Series S consoles in the UK and EU, with some models rising by up to £170 or €200. The hikes, revealed after US pricing was announced in June, are being driven by soaring RAM and storage costs linked to demand from the AI industry, though Microsoft's increases have been notably steeper than those of rival console makers.
The 1TB Xbox Series X with a disc drive rises over 30% from £499.99/€599.99 to £669.99/€799.99, while the 512GB Series S jumps over 43% from £299.99/€349.99 to £429.99/€499.99. This marks the third round of price rises since May 2025, meaning the top-end console now costs $300 more than its 2020 launch price of $499.99, and Microsoft is also discontinuing the 2TB model amid the ongoing storage shortage.
In short
- Xbox prices in UK/EU rising by up to £170/€200
- Increases blamed on AI-driven RAM and storage shortages
- Third price hike since May 2025; 2TB model discontinued
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
From the perspective of consumers and retailers, a price rise of up to €200 or £170 is hard to justify: the hardware itself hasn't changed, wages and household budgets in the UK and EU are under sustained pressure, and consoles are often sold near cost anyway, with Microsoft making its margin on subscriptions and software. Critics with this view argue that hiking prices steeply outside the US, without early transparency on regional figures, risks pricing out younger or lower-income players and undermines trust in a brand that markets itself as accessible entertainment.
The case against
From Microsoft's perspective, the increases reflect real and rising costs of doing business internationally: currency fluctuations, higher component and logistics costs, tariffs, and regional taxes all affect what it costs to manufacture, ship and support consoles outside the US. Advocates of this view would note that hardware businesses often operate on thin margins and that periodic price adjustments, however unwelcome, are a normal response to inflation and supply-chain pressures rather than an attempt to exploit customers, especially if console pricing still remains competitive against rivals in the same markets.
Explained simply
Xbox is Microsoft’s games console range, with the Series X at the higher end and the smaller Series S as a lower-cost option. The X comes in versions with different storage capacities, and some models include a disc drive for physical games.
Microsoft competes with Sony’s PlayStation and Nintendo’s Switch in the console market. The price of memory and storage components affects how much consoles cost to make; demand from the AI industry has increased pressure on supplies. Console prices matter to players choosing a system and to game makers seeking to reach a large audience.
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