Microsoft has quietly implemented significant price increases for its Xbox Series X and Xbox Series S consoles in the UK, with the top-tier disc version now retailing at £669.99 – a jump of £170 from its previous £499.99 price point. The update was made on the Microsoft website late on Saturday afternoon, with no formal announcement, catching many consumers and retailers off guard.
Price breakdown: All models affected
The new pricing structure, which took effect immediately, sees all four console models rise by more than £150. The Xbox Series S 512GB now costs £429.99, up from £299.99, while the 1TB version has increased from £349.99 to £519.99. The digital-only Xbox Series X 1TB has risen from £449.99 to £619.99, and the disc-based Series X 1TB now stands at £669.99.
These increases come just weeks after Microsoft first hinted at price rises in June, citing the 'current component costs crisis' as the primary reason. The company, however, did not disclose specific figures at that time, and the sudden implementation means there is no grace period for consumers to purchase at the old prices.
Context: Industry-wide trend
The move mirrors similar actions by Sony, which raised the PlayStation 5 price by £90 in March due to the same component shortages. Nintendo has also announced a price hike for the upcoming Switch 2, set to take effect on September 1, though exact UK pricing has yet to be confirmed.
According to industry analysts, the component crisis is largely driven by AI data centres consuming global supplies of RAM and hard drives – a trend that Microsoft, as a major cloud provider, has actively contributed to. This has added a layer of irony to the company's justification for the increases.
Impact on sales and reputation
The price hikes come at a challenging time for Xbox, which has seen console sales lag behind competitors. The company has also faced criticism over recent layoffs and its inconsistent approach to multiformat releases, which have eroded consumer confidence. The new pricing makes the Xbox an even less attractive prospect, particularly for budget-conscious gamers.
At launch, nearly six years ago, the Xbox Series X was priced at £449.99 and the Series S at £249.99. The Series S was intended as a low-cost entry point, but it has underperformed expectations and has been accused of holding back Series X game development. With the new price, some industry observers question why Microsoft hasn't discontinued the model altogether.
Future implications
These increases are not the first for the Xbox line, and they highlight a broader trend of rising hardware costs across the industry. As component prices continue to climb, the next generation of consoles – including the PlayStation 6 and its Xbox counterpart – are expected to be significantly more expensive, potentially pricing out a large segment of the mass market.
Microsoft has stated that it is still selling the consoles at a loss even after the price increases, which suggests further hikes could be possible in the future. For now, UK consumers face a stark reality: the cost of console gaming is rising sharply, with no immediate relief in sight.
