According to reports from Reuters and The Wall Street Journal on June 25, the company will raise the price of the Xbox Series S 512GB model by $100, bringing the total to $500. Models equipped with 1TB of storage will see a price increase of $150.
This follows a price hike last October, when Microsoft raised console prices in the U.S. by $20 to $70. The company stated that the cost of storage and memory for consoles has already increased by more than 2.5 times and could double again by next fall.
Game consoles are particularly vulnerable to rising component costs, as they are often sold at low margins or even below cost, unlike smartphones or PCs. Microsoft noted that it has been discussing alternatives with suppliers but found further price adjustments unavoidable.
This decision reflects a broader trend of rising memory prices affecting consumer products. Earlier, Apple also raised prices for its MacBook and iPad models. The demand for high-performance memory for AI servers has strained the supply of general-purpose memory, including DRAM and NAND flash.
Following the price increase announcement, Microsoft shares fell by 3.5%, while Apple shares dropped by 6.1%. While rising memory prices may benefit semiconductor companies, they pose cost pressures and concerns about demand for consumer electronics manufacturers.
* This article has been translated by AI.
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