Redakcja Choose TV
Microsoft has opted for another price hike on Xbox consoles. This time the changes cover Europe and the United Kingdom and are far larger than many gamers expected. The most expensive Xbox Series X now costs nearly €800, despite the console having launched almost six years ago. The manufacturer cites rising production costs and issues in the memory and data-storage markets to explain the decision. At the same time, questions are being raised about the price of the next generation of Xbox consoles. All signs point to future hardware possibly being even more expensive.
Microsoft explains price rises by citing increasing production costs
New Xbox console prices are already in effect in many European markets and in the United Kingdom. The Xbox Series S with a 512 GB drive now costs €499.99, while the 1 TB version has been priced at €599.99. The digital edition of the Xbox Series X has reached €749.99, and the model with a disc drive now costs €799.99. In the United Kingdom prices have risen by between £130 and as much as £170 depending on the console version. This is another hike after earlier changes in the United States, where prices increased by $100 to $150. Microsoft explains the decision by 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 may rise again until the end of 2027. Higher costs also include the processors and graphics chips used in the new devices. All of this means that console production is becoming increasingly expensive. Microsoft admits the current situation could also affect future devices. Rising component prices remain one of the biggest challenges for the entire industry.
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 information so far, the device will use a new AMD chip and offer significantly higher performance and improved ray tracing. However, more advanced components will mean even higher production costs. An additional problem is the difficult situation in the Xbox division. In the last quarter, gaming revenues fell by 10 per cent, and hardware sales decreased by 13 per cent. Over the fiscal year, revenue from console sales was down by as much as 29 per cent. Microsoft also carried out a restructuring affecting around 3,200 employees associated with the Xbox brand. The company admits that the business's profitability remains lower than that of PlayStation and Nintendo. At the same time, Project Helix is expected to deliver top performance while keeping the price accessible. However, current price rises mean that achieving that goal could prove 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 forthcoming Project Helix, which could prove to be even more expensive than the current Xbox Series X and Series S models.
source: digitaltrends
