Microsoft has officially announced that prices for its Xbox consoles have gone up across the UK and European Union. The increases are significantly higher than what was expected for the United States, where the jump was around $100 to $150. In the UK, the Xbox Series X console that used to cost £500 is now priced at £670, a rise of about 34 percent.
For the Xbox Series S model, customers in Europe are now paying between 150 to 200 euros more than before. The price increase is due to a global shortage of memory chips, which has affected the entire tech industry. This shortage has been worsened by the growing demand for chips to power artificial intelligence systems.
Companies like Sony and Nintendo have also announced similar price increases in response to the same supply issues. Microsoft warned customers about price changes back in June, but did not reveal the prices for the United States, nor how much the increases would be outside of the US.
Users noticed the price changes on Microsoft’s updated online store pages. The cost of entry-level consoles in Europe is now close to the equivalent of $575, which reflects the new pricing structure.
Microsoft has also said that memory and storage prices may double again. This ongoing situation is making it harder for manufacturers to secure the components they need for production.
The memory shortage has been described by some as a kind of ‘RAMageddon’ that is affecting many industries. Industry experts have speculated that Microsoft’s investments in AI data centers may have played a role in the chip shortage.
However, this remains a theory at this point. The price hikes are a result of global supply chain disruptions and the high demand for memory chips.
Consumers in the UK and EU are now facing a tough decision as their favorite gaming consoles become more expensive. The situation is expected to continue impacting the market for some time to come.
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