Microsoft Reportedly Preparing Another Xbox Price Hike Amid Global RAM Shortage

Microsoft may be gearing up for yet another price increase on its Xbox consoles, according to reports from Moore’s Law is Dead (via TGP). The insider claims that the company has warned partners about potential cost hikes due to an ongoing shortage of RAM.

Xbox consoles could see a third price hike in 2025 amid RAM shortages. | Image via Gaming Amigos

The shortage is being driven by the rapid expansion of AI data centers, which are consuming massive amounts of memory hardware. OpenAI, for example, recently signed a deal with Samsung and SK Hynix to produce 900,000 RAM wafer starts per month. With so much of the supply being directed toward AI, consumer electronics like gaming consoles are feeling the squeeze.

Moore’s Law is Dead suggested that Microsoft “didn’t plan ahead at all,” leaving Xbox vulnerable to rising costs. He added that if you’re considering buying an Xbox at current prices, you may want to act quickly, as prices could rise again or supply could dry up altogether.

Interestingly, Sony appears to be in a stronger position. According to the same report, PlayStation secured large amounts of GDDR6 RAM earlier when prices were lower. This foresight means Sony can afford to cut PlayStation 5 prices during Black Friday promotions, while Microsoft may be forced to raise costs.

If another hike happens, it would mark the third Xbox price increase in 2025 alone. Back in May, the Xbox Series X jumped by $100, while the Series S rose by $80, citing “macroeconomic conditions.” A second increase followed in October, largely due to U.S. tariffs on imports from China. Current pricing stands at $649 for the Series X and $399 for the Series S, compared to their original 2020 launch prices of $499 and $299, respectively. Special editions, like the 2TB “Galaxy Black” Series X, now retail for $799.

Console Model	Launch Price (2020)	Price after May 2025 Hike	Price after Oct 2025 Hike	Total Increase
Xbox Series S (512GB)	$299	$379	$399	+$100
Xbox Series X (1TB)	$499	$599	$649	+$150

It’s not just hardware costs hitting players. Microsoft also raised prices on Xbox Game Pass subscriptions this year. The Ultimate tier now costs $29.99 per month, up from $19.99.

Despite these challenges, Xbox leadership continues to emphasize the importance of hardware. In a recent interview with Fortune, Xbox president Sarah Bond said that “hardware is absolutely core to everything we do at Xbox” and shared that the team is developing a next-generation console designed to deliver a “powerful experience” for players.