Xbox Says Component Costs Jumped 5x in 2 Years, Driving $800 Console Prices
Updated
Updated · Forbes · Jun 11
Xbox Says Component Costs Jumped 5x in 2 Years, Driving $800 Console Prices
3 articles · Updated · Forbes · Jun 11
Summary
Storage component costs for Xbox have already risen to more than 4x last fall’s level and are projected to top 5x their price from two years ago by the 2027 holiday season, CEO Asha Sharma said.
AI systems are soaking up chips, storage and memory supply across the tech industry, Sharma said, pushing console makers into repeated price increases that now include an $800 2TB Xbox Series X and a $900 PS5 Pro.
Xbox appears especially exposed because of hardware decisions made over the past five years, Sharma said, even as the company keeps talking up a renewed hardware push.
That squeeze raises doubts about Xbox’s next device, the Helix PC-console hybrid, and about whether console makers can avoid losses as gaming hardware becomes less affordable.