Microsoft Plans Third Xbox Price Hike Amid Chip Shortage

Microsoft is preparing to raise prices on its Xbox Series X and Series S consoles for the third time this year, amid a global shortage of DRAM memory chips driven by surging demand from artificial intelligence projects. The potential increase, which could affect supply and availability as early as December, stems from contracts that have diverted a significant portion of memory production away from consumer electronics.

The consoles, launched in November 2020 at $499 for the Series X and $299 for the Series S, have seen steady price escalations. In May, Microsoft implemented worldwide increases, raising the Series X by $100 and the Series S by $80 in the United States. A second adjustment followed in September, limited to the U.S. market and attributed to macroeconomic factors including tariffs. This brought the Series X to $599 and the Series S to $379.99, with some retailers now listing the Series X as high as $649.99. Accessories and the Game Pass subscription service have also faced hikes, contributing to reports of declining sales and cancellations among subscribers.

The latest threat arises from a deal between Samsung, SK Hynix, and OpenAI, which has secured nearly 40...