Microsoft has followed Apple by increasing the prices of Xbox consoles, starting August 1. The 512GB Series S will now cost £499, up from £399, while the 1TB version is priced at £599 instead of £449. The Xbox Series X models are also seeing significant price hikes – the 1TB Digital model rises to £750 from £599 and the Disc model to £800 from £649. Microsoft claims these increases are due to soaring memory and storage costs, which have increased more than 2.5 times since previous levels. The company warns that prices could double by fall 2027. This move comes after a similar price hike in October last year. Industry-wide pressures, driven by demand for AI infrastructure and data centres, are cited as the reason behind these increases. The announcements come at a time when tech giants are increasingly feeling the pinch of rising costs. Apple, too, has recently increased prices across its hardware lineup, including Macs and iPads. As technology companies invest in larger AI systems, the demand for advanced memory and storage chips has surged, tightening supply chains and pushing up costs. To soften the impact, Microsoft is expanding financing options and introducing new programs to provide older consoles at lower prices. Customers can now access buy-now-pay-later programmes when purchasing eligible Xbox hardware through Microsoft Stores, with Amazon shoppers qualifying for 0% APR financing on eligible purchases over 12 months. Sony has also followed suit, raising the price of the PS5 Digital Edition from £499 to £599 since launch. Nintendo’s response so far has been more measured, but as AI demands continue to grow, the company may face pressure to raise prices further in the future.