Microsoft appears poised to implement another price increase for its Xbox Series X and S consoles in the very near future, according to industry insiders monitoring the ongoing component supply crisis.
The DRAM Dilemma Driving Costs
The root cause of this potential price hike traces back to a significant agreement between Samsung and supplier SK Hynix, who recently committed to supplying approximately 40% of the world's DRAM output to OpenAI for its Stargate data centres. This massive allocation has created a scramble among other technology companies for remaining DRAM supplies, leading to both shortages and substantial cost increases.
According to reports from Chinese outlet Ctee, the situation has become particularly dire, with DRAM prices surging 171% year-on-year. While multiple electronics manufacturers are expected to feel the impact of these price increases, gaming consoles appear particularly vulnerable due to their substantial memory requirements.
Microsoft's Planning Failure vs Sony's Foresight
YouTuber Moore's Law Is Dead, known for industry analysis, suggests Microsoft may suffer more than most from these developments. 'They didn't plan ahead at all, apparently,' he stated regarding Xbox's position. 'If you still want an Xbox, for some reason, at their current pricing, those prices could go up soon, or supply could just entirely dry up.'
The insider claims multiple sources have received warnings from Microsoft sales representatives that 'this is going to affect the Xbox Series consoles very, very soon, sooner rather than later.'
In contrast, Sony appears to have navigated the crisis more effectively. According to the same sources, 'Sony planned ahead, bought up gobs of RAM near the bottom of the pricing, and thus they should be fine for months. They have plenty of GDDR6.' While PlayStation 5 prices might eventually increase, possibly next year, there's no immediate concern matching Microsoft's predicament.
Current Pricing Context and Future Implications
The potential increase comes at an already challenging time for Xbox pricing in the UK. Originally launching in November 2020 at £449 for the Series X and £249 for the Series S, both consoles have already seen £50 price increases despite what the report describes as disappointing sales performance.
American consumers have faced even steeper hikes, with the Xbox Series X increasing by $150 overall. While Sony's PlayStation 5 has also been affected by various economic factors including US tariffs, the current DRAM situation threatens to disproportionately impact Microsoft's console offerings.
Looking further ahead, the component shortages and price increases could potentially affect next-generation hardware expected in 2027. Both Sony and Microsoft faced challenges with the slow transition from previous console generations, and if next-gen consoles launch with astronomical pricing and minimal visible improvements, they could face even greater market resistance.
Industry observers suggest both companies might consider delaying their next console releases by a year or more to navigate the current supply chain challenges.
For consumers considering an Xbox purchase, the advice appears clear: take advantage of current Black Friday deals rather than risking either higher prices or potential supply shortages in the coming months.
