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Microsoft has decided on another round of price increases for Xbox consoles. This time the changes cover Europe and the UK and are much larger than many gamers expected. The most expensive model, the Xbox Series X, now costs almost €800, even though the console debuted nearly six years ago. Microsoft cites rising production costs and problems in the memory and storage markets. At the same time, questions are being raised about the price of the next generation of Xbox consoles. All signs point to future hardware being even more expensive.
Microsoft explains price hikes by rising production costs
New Xbox console prices are already in effect in many European markets and the UK. The Xbox Series S with 512 GB storage now costs €499.99, while the 1 TB version is priced at €599.99. The Xbox Series X Digital Edition has reached €749.99, and the model with a disc drive now costs €799.99. In the UK, prices rose by £130 to as much as £170 depending on the console version. This is another increase after earlier changes in the United States, where prices went up by $100 to $150. Microsoft cites a sharp rise in the cost of memory and data storage. According to the company, prices for these components have already increased more than 2.5 times and could rise again through to the end of 2027. Higher costs also cover processors and graphics chips used in the new devices. All this is making console production increasingly expensive. Microsoft says the current situation could also affect future devices. Rising component prices remain one of the industry's biggest challenges.
Project Helix could be even more expensive than current consoles
Rising prices for the current generation also raise questions about Microsoft's next console, known as Project Helix. According to available reports, the device will use a new AMD chip and offer significantly higher performance and better ray tracing. More advanced components, however, will mean even higher production costs. An additional problem is the difficult situation in the Xbox division. In the most recent quarter, game revenue fell by 10% and hardware sales dropped by 13%. Over the fiscal year, console sales revenue was down by as much as 29%. Microsoft also carried out a restructuring affecting around 3,200 employees tied to the Xbox brand. The company admits the business's profitability remains lower than that of PlayStation and Nintendo. At the same time, Project Helix is meant to deliver top performance while keeping the price accessible. Current price increases, however, make achieving that goal potentially very difficult. Many market observers are wondering how much the new generation of Xbox will cost at launch.
Microsoft has significantly raised Xbox console prices in Europe, citing rising component costs. At the same time, the move raises concerns about the price of the upcoming Project Helix, which could prove to be even more expensive than the current Xbox Series X and Series S models.
source: digitaltrends
