Xbox price jumps $150 as AI chip costs squeeze console makers before GTA VI

Microsoft raised Xbox Series X prices by $150 to $749 and Xbox Series S by 25% to $499 this week, with the company explicitly blaming soaring memory chip costs. The increases follow Sony's PlayStation 5 price hike of $100 in March, which raised the console to $649.99 in the US. Microsoft's percentage increase for the Series S is steeper than Sony's PlayStation 5 hike, reflecting the intensity of chip supply pressure on the gaming hardware sector.

The root cause is a global shortage in random-access memory (RAM), driven by massive demand from AI data center operators. According to Piers Harding-Rolls of Ampere Analysis, "With no sign of prices easing largely due to demand for AI infrastructure, Sony will have made the move to protect its slim hardware margins." Binance Research has termed this "chipflation." DRAM prices have nearly sextupled in a year as AI infrastructure investments have claimed chip supply historically reserved for consumer electronics. Apple faced the same pressure and raised Mac and iPad prices earlier in the year due to memory costs.

The console price war comes at a critical moment: Grand Theft Auto VI launches November 19 exclusively on PlayStation 5 and Xbox Series X/S. The game's Standard edition costs $79.99 and its Ultimate edition costs $99.99. Rockstar Games confirmed the exclusive release date in a June 25, 2026 tweet. Analysts warn that Sony may raise PlayStation 5 prices again before launch. Windows Central editor Jez Corden cautioned that the current price increases may not be final, stating "This ain't even the ceiling." Take-Two's stock has already declined once on GTA VI pre-order pricing, showing that investors are closely monitoring how console prices and game pricing interact during the critical holiday season launch window.