The short version
- Microsoft has raised retail costs for all current console models in European and British territories, with entry-level units seeing the steepest percentage jumps.
- The adjustments mark the third wave of pricing changes since mid-2025, pushing the flagship disc model well above its original 2020 debut cost.
- A high-capacity two-terabyte variant is being discontinued alongside the financial revisions, reflecting ongoing semiconductor supply constraints driven by artificial intelligence demand.
Microsoft has implemented substantial price adjustments for its gaming consoles across European and British markets, marking the latest phase of a broader cost escalation that began in mid-2025. The revisions affect every current hardware tier, with entry-level units experiencing the most severe percentage increases. These shifts reflect ongoing supply chain pressures within the semiconductor sector, particularly as artificial intelligence development continues to drive up component costs industry-wide. Consumers purchasing new systems will now face significantly higher upfront expenses compared to previous market conditions.
The financial impact varies considerably depending on the selected configuration. Base models equipped with half a terabyte of storage have seen their retail value climb by more than forty percent in both regions. Mid-tier digital variants and standard disc-equipped machines are also subject to steep hikes, with the top-of-the-line physical media version now commanding a premium that exceeds its original launch cost by three hundred dollars when accounting for cumulative adjustments. The pricing structure demonstrates a clear stratification, where lower-capacity devices absorb the brunt of the percentage increases while higher-end units maintain a more moderate relative jump.
This adjustment represents the third consecutive round of cost modifications since May of last year. When the hardware initially debuted in 2020, the flagship model carried a substantially lower price tag that has since been completely phased out. The cumulative effect of these sequential increases has fundamentally altered the entry barrier for new players in Western markets. While competitors have also adjusted their retail figures to accommodate rising memory and storage expenses, the magnitude of these particular revisions stands out as unusually steep compared to standard market fluctuations.
Alongside the financial revisions, Microsoft is discontinuing a specific high-capacity variant that previously offered double the standard storage space. The removal of this option aligns with broader manufacturing constraints related to flash memory availability and production economics. Buyers seeking expanded library capacity will now need to rely on external accessories or accept the newly priced internal configurations. The combination of elevated retail costs and reduced hardware variety suggests a prolonged period of adjusted consumer expectations for gaming equipment in these regions.
Sources behind this briefing
Go to the original reporting
- The Verge↗Xbox prices are increasing by up to €200 or £170
