Xbox: a dramatic console price increase amid the RAM crisis

Microsoft has announced a substantial price increase for its Xbox console range amid the ongoing crisis. The move directly contradicts the brand’s own messaging.

Will gaming become unaffordable? Quite possibly. Microsoft has confirmed that the price of its Xbox consoles will rise from 1 August. It is a striking increase, and the third in six months.

The consoles are therefore set for a steep rise in price. Versions with 512 GB of storage will cost an extra 100 dollars, while 1 TB models will rise by 150 dollars. Both consoles are affected: the Xbox Series S and Xbox Series X. From 1 August, this means the 512 GB Xbox Series S, the manufacturer’s “budget” console, will sell for 500 dollars, while the 1 TB Xbox Series X will be priced at 800 dollars. The 2 TB version, meanwhile, is being withdrawn from sale. No euro pricing has yet been confirmed, but the increase is expected to be broadly similar as the measure is worldwide. The Xbox Series X, currently listed at 549 euros, should therefore be sold for 700 euros.

Microsoft hit hard by the RAM crisis

The reason behind this extraordinary increase is clear: the shortage of RAM affecting the technology sector. Microsoft openly acknowledged the issue in its statement:

“Last October, we increased Xbox console prices by 20 to 70 dollars in the United States. We hoped another increase would not be necessary and spent recent months working with our suppliers to find solutions. Unfortunately, the cost of console storage and memory has more than doubled, and we expect it to double again by autumn 2027. The entire consumer electronics industry is dealing with the current component shortage, but consoles are suffering especially severe consequences.”

Xbox console prices rise across the range

The sharp increase affects every remaining Xbox console configuration. It also removes the 2 TB model from retailers, leaving the 512 GB Xbox Series S and 1 TB Xbox Series X as the models directly impacted by the new pricing.

An increase arriving at the worst possible time for Xbox

Microsoft’s Xbox division has been struggling for several years. Its new head, Asha Sharma, wants to give it fresh momentum. Things initially appeared to be moving in the right direction, with the Game Pass price reduction followed by the Xbox Game Showcase, which unveiled compelling exclusive games. That positive momentum was quickly shattered, however, by the announcement of extensive job cuts and studio closures. Players reacted angrily, criticising what they describe as harsh management practices.

Even more damagingly, some have questioned Asha Sharma’s unsteady communication. Only days ago, speaking to Entertainment Weekly, she said that “video games are unaffordable in many cases, in terms of how we have traditionally viewed them”. Her comments suggested that she was looking for solutions. Not so. Xbox’s attempted rehabilitation is increasingly resembling a globally broadcast shipwreck, both in its management and its communication.

Naturally, Xbox is not responsible for the RAM crisis, and every manufacturer is raising its prices, including Sony and Apple. Yet its situation is under particularly close scrutiny, as the brand stands at a pivotal point in its history. There is now plenty of reason to be sceptical about the reassuring statements and contradictory claims.