Microsoft Xbox price rise: the RAM crisis hits at the worst time

Microsoft has announced a major increase in the price of its Xbox consoles amid a crisis. The move stands in complete contrast to the brand’s own messaging.

Will gaming become prohibitively expensive? In all likelihood. Microsoft has confirmed that the price of its Xbox consoles will rise from 1 August. It is a striking increase-the third in six months.

The price rises are substantial across the range. Versions with 512 GB of storage will cost an extra $100, while 1 TB models will rise by $150. Both consoles are affected: the Xbox Series S and Xbox Series X. From 1 August, the 512 GB Xbox Series S, the manufacturer’s “budget” console, will cost $500, while the 1 TB Xbox Series X will be priced at $800. The 2 TB version, meanwhile, is being withdrawn from sale. No euro prices have yet been confirmed, but as this is a global measure, the increase is expected to be broadly similar. The Xbox Series X, currently priced at €549, is therefore likely to retail for €700.

Microsoft hit hard by the RAM crisis

The explanation for this extraordinary increase is not difficult to find: the shortage of RAM affecting the technology world. Microsoft openly acknowledges the issue in its statement:

“Last October, we increased Xbox console prices by between $20 and $70 in the United States. We hoped a further increase would not be needed, and we have 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 sector is dealing with the current component shortage, but consoles are feeling its effects particularly severely.”

Xbox price rise comes at the worst possible time

Microsoft’s Xbox division has been struggling for several years. Its new head, Asha Sharma, wants to give it fresh momentum. Things had begun reasonably well, with the Game Pass price reduction followed by the Xbox Game Showcase, which unveiled appealing exclusive games. However, that positive momentum was quickly undermined by the announcement of numerous redundancies and studio closures. Players reacted angrily, criticising what they see as harsh management practices.

Asha Sharma’s messaging under scrutiny

More concerning still, some observers have highlighted the fragility of Asha Sharma’s communication. Only a few days ago, in Entertainment Weekly, she said that “video games are unaffordable in many cases, in terms of the way we have traditionally approached them”. She was therefore suggesting that she was seeking solutions. That has not gone well. Xbox’s attempted rehabilitation increasingly resembles a publicly televised 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 being watched especially closely, as the brand stands at a turning point in its history. There is now ample reason to be sceptical of the reassuring rhetoric and contradictory statements.