Microsoft announced price increases of $100 or more [1] for Xbox Series X|S consoles this week.

The price adjustments arrive as the company navigates a volatile hardware market, potentially impacting consumer adoption of the ecosystem.

Microsoft said the changes are a response to an ongoing hardware crisis and rising component costs [1]. Beyond the primary consoles, the company is also implementing price hikes for Xbox Game Pass Ultimate in several countries [2]. However, reports indicate Microsoft is hitting the brakes on these subscription increases for a small number of specific countries [4].

The price volatility extends to handheld hardware. The ROG Xbox Ally X, which previously carried a price of $1,000 U.S. [3], is receiving a price hike specifically for the Japanese market [3].

While official prices rise, some third-party retailers have not yet adjusted their systems. One retailer offered a discount of 33% off [2] for Xbox Game Pass Ultimate despite the announced increases.

These adjustments reflect a broader trend of hardware cost fluctuations affecting the gaming industry. Microsoft has not specified if further increases are planned for other regions or product lines.

“Xbox Series X|S consoles will see price increases of $100 or more”

These price hikes signal that the 'hardware crisis' is continuing to pressure margins for high-end electronics. By raising prices on both hardware and recurring subscription services, Microsoft is shifting the financial burden of component inflation toward the consumer to maintain profitability in the gaming sector.