Microsoft has announced another major price hike for Xbox consoles, blaming the “current components crisis” for the rise. 

• READ MORE: Has gaming outpriced the average player?

Last May, Microsoft announced a series of price rises for consoles, games and accessories around the world. The standard 512gb Xbox Series S went up £50 to £299.99 while the more powerful 2tb Xbox Series X increased from £559.99 to £589.99. In October, another price rise hit US gamers and now Microsoft has confirmed Xbox consoles are about to get a lot more expensive.

According to Microsoft, the 512gb Xbox Series S will be getting a $100 price hike starting August 1, while the 1tb Xbox Series X will go up $150. The 2tb edition of the console will be scrapped completely. Regional costs haven’t been confirmed yet but these price increases will be rolled out worldwide.

XBOX is increasing prices for their consoles in August 🎮

Xbox Series S 512GB: $399 ➡️ $499

Xbox Series S 1TB: $449 ➡️ $599

Xbox Series X 1TB: $649 ➡️ $800

Xbox Series X 1TB Digital: $599 ➡️ $750

Second price increase within a year pic.twitter.com/aEyEttUmCZ

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“We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options. Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027. The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles,” Microsoft wrote in a blog post. “Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make.”

The company has announced a string of programs to make buying an Xbox console more “accessible” including a buy now, pay later scheme and allowing players to access interest free financing. They are also working on an improved refurbishment system for used consoles.

Earlier this year, Nintendo raised the price of the Nintendo Switch 2 by $50 in response to “various changes in the market environment” while Sony has increased the cost of the PlayStation 5 twice in the past year. The increase in memory prices follows a boom in tech companies building AI data farms to try and utilise the rapidly-evolving tech. 

New Xbox boss Asha Sharma recently said the next generation of Xbox consoles might not be “the most premium, high-performance” because “we’ve reached a point where it will be hard to imagine that mass audiences can afford thousands of dollars to spend on a console.” There are also several reports suggesting Microsoft could be set to close some of its game studios to try and cut costs. “It is important to have both optimism and realism as we work to reset the business,” Sharma wrote in an open letter to staff.

In other news, Grand Theft Auto 6 is getting a proper physical release, but you’ll be waiting for “months” to get your hands on it.