Microsoft raises Xbox Series X and S prices in UK
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Microsoft has raised Xbox console prices worldwide, blaming rising memory and storage chip costs, with UK shoppers now paying up to £170 more for a premium Series X. The disc-drive Series X has jumped from £500 to £670, while the entry-level Series S has risen roughly 43% from £300 to £430. The increase follows similar moves by rival Sony, which raised PlayStation 5 prices by £90 in March, and reflects an industry-wide pattern of firms passing on higher component costs to consumers, driven partly by AI-fuelled demand for memory chips and graphics cards.
In the US, basic Xbox consoles rose by $100 to $499 and higher-memory models by $150 to $749, with comparable rises in the EU. Valve's newly launched Steam Machine has also arrived pricier than expected, citing the same hardware pressures. The hikes have drawn online criticism, with some branding them "highway robbery" for years-old hardware, and commentators warning prices may rise further. The news comes as Xbox owner Microsoft faces a dip in gaming division revenue and recently cut around 3,200 jobs in what it called the most significant restructure in Xbox's history.
- Xbox Series X now £670 (up £170); Series S up 43% to £430
- Rising AI-driven memory and graphics card costs are blamed
- Follows Sony's PS5 price rise and Microsoft's gaming job cuts
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Microsoft has increased the price of its Xbox Series X and Series S consoles across several markets, including the UK and US, pointing to the rising cost of the memory and storage chips that go inside them. In the UK, the top Series X model has gone up by £170, while the cheaper Series S has jumped by around 43%. Sony made a similar move with the PlayStation 5 earlier this year, suggesting the pressure on component costs is being felt across the games console industry rather than by one company alone.
The chips in question are in high demand partly because of the growth of artificial intelligence, which relies on similar memory and processing hardware, pushing up costs for manufacturers of consumer electronics more broadly. Microsoft's Xbox division has also been going through a period of financial strain, including falling revenue and significant job cuts announced earlier this year, which forms part of the wider context for the price rises.
These changes matter because Xbox and PlayStation are two of the biggest gaming platforms worldwide, so price increases affect a large number of existing and prospective console owners. The rises have also prompted debate about whether it is fair to charge more for hardware that has already been on the market for some time.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Those defending the price rise point out that component costs, particularly for memory and storage chips, have genuinely increased across the industry, driven in part by surging demand for AI hardware, and that Microsoft is not acting in isolation given Sony's own recent price rise. Businesses routinely adjust prices to reflect input costs, and doing so is a more transparent response than quietly reducing quality or discontinuing models. With the gaming division already reporting falling revenue, maintaining sustainable margins on hardware can be seen as necessary for the long-term health of the platform, including continued investment in games and services that consumers rely on.
The case against
Critics argue that asking consumers to pay considerably more, in some cases over 40% more, for console hardware that has not changed and is already several years old feels difficult to justify, especially when buyers have limited alternatives within a closed ecosystem. The timing is particularly hard to defend, coming so soon after roughly 3,200 job losses and news of falling divisional revenue, which can make the increase look like ordinary customers absorbing the cost of corporate restructuring rather than shareholders or executives. There is also concern that a further round of price rises could put gaming further out of reach for younger or budget-conscious players, eroding trust in a company that markets its consoles partly on accessibility.
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Originally published by BBC Technology as “Xbox Series X price hiked by £170 due to rising memory chip costs”.