Xbox Series X and Series S Prices Soar in UK and Europe—Microsoft Blames AI-Driven Component Costs

Microsoft has raised the prices of Xbox Series X and Series S consoles across the United Kingdom and several European markets, with the revised pricing taking effect in early August 2026. The increase, which reaches up to €200 or £170 depending on the model, marks one of the company’s largest console price adjustments to date. Microsoft attributes the move to soaring memory and storage component costs, exacerbated by surging demand from the artificial intelligence industry.

Updated Xbox Console Prices in the UK and Europe

The updated pricing affects nearly every current Xbox console. As part of the product lineup changes, Microsoft has also confirmed it is discontinuing the 2TB Xbox model. The price hikes make Xbox consoles significantly more expensive for gamers in these regions.

Why Microsoft Increased Xbox Console Prices

According to Microsoft, the increase reflects broader challenges across the technology industry rather than a shift in its gaming strategy. The company stated that storage and memory costs have risen more than 2.5 times compared with previous levels and are expected to remain high through 2027. Increasing investments in AI infrastructure have raised the need for sophisticated memory and storage chips, thereby straining the global supply chain. Microsoft noted that similar cost pressures have affected other consumer electronics manufacturers, leading several gaming companies to revise hardware pricing in recent months.

What the Price Increase Means for Gamers

This latest hike follows the third major revision to Xbox pricing in 2025, breaking from the usual trend where gaming consoles become cheaper as they age. While Microsoft will still offer financing and refurbishment of consoles in selected countries, the price increase may deter cost-sensitive customers looking to upgrade or purchase a new Xbox. As the current console generation enters its later years, the revised pricing is expected to play a key role in consumer purchasing decisions, particularly when comparing Xbox with competing gaming platforms.