Microsoft<\/a> raised the prices of its\u00a0Xbox\u00a0consoles\u00a0twice last year<\/a>. The latest rise means that an Xbox Series X<\/a> disc-drive model now costs $300 more than it did at launch in 2020, while the Series S is 50% more expensive.<\/p>\n In a statement, Xbox blamed the price increases on \u201cthe current components crisis\u201d impacting the consumer electronics industry, which has seen all three major console manufacturers raise prices significantly.<\/p>\n \u201cWe hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options,\u201d the company said. \u201cUnfortunately, console storage and memory prices have increased by more than 2.5x, and we expect another doubling by the fall of 2027.<\/p>\n New US Xbox Console PricesSeries X 1TB (disc drive) \u2013 $799.99 (+$150)Series X 1TB (digital) \u2013 $749.99 (+$150)Series X 2TB Galaxy Black \u2013 DiscontinuedSeries S 512GB \u2013 $499.99 (+$100)Series S 1TB \u2013 $599.99 (+$150<\/p>\n \u201cThe entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles. Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make.\u201d<\/p>\n Alongside the price rise news, Microsoft announced new programs to help make its consoles more affordable, including Buy Now, Pay Later options through Microsoft Stores, and interest-free financing for up to 12 months via Amazon<\/a>.<\/p>\n The company also said it\u2019s working with retail partners on new programs to provide previously played consoles at lower prices. \u201cPlayers who are ready to upgrade or no longer use their console will be able to trade it in with participating retail partners for cash or store credit,\u201d it said. \u201cThose consoles will then be made available at lower prices for players.\u201d<\/p>\n News of the programs follows comments from CEO Asha Sharma<\/a> earlier this month, indicating that Xbox was exploring \u2018radically different business models\u2019<\/a> to make its next console affordable. Earlier this week, Valve confirmed its Steam Machine would retail for over $1,000<\/a> \u2013 a price point some analysts later speculated would be \u201cthe floor\u201d for next-gen consoles<\/a> expected to arrive from 2027.<\/p>\n The global economic situation has piled pressure on game console manufacturers, which have historically reduced prices over time. At this stage of PlayStation 4<\/a>\u2019s lifecycle, the console retailed for as little as $200, but the cheapest PlayStation 5<\/a> model costs 50% more ($200 \/ \u00a3200) than it did at launch in 2020.<\/p>\n Both Sony<\/a> and Microsoft raised the prices of their game consoles last year. Then, in March,\u00a0Sony announced a massive $100 price increase for PlayStation 5 consoles<\/a>, citing the \u201cglobal economic landscape\u201d. Last month, Nintendo followed with a price increase for Nintendo Switch 2<\/a> in the United States, Europe, Canada, and Japan.<\/p>\n<\/p>\n