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Xbox Price Hike Looms as Global RAM Shortage Worsens

▼ Summary

– Microsoft may increase Xbox console prices again due to global RAM shortages and rising costs.
– The company has already raised hardware prices twice this year, in May and September for US players.
– AI data centers are reportedly consuming large amounts of memory, reducing availability for consumer electronics like Xbox.
– Sony reportedly secured RAM supplies at lower prices and is cutting PlayStation 5 prices for Black Friday, unaffected by shortages.
– Microsoft recently increased Xbox Game Pass Ultimate to $29.99/month and added new features like cloud gaming improvements.

Consumers may soon face higher costs for Xbox consoles as a global RAM shortage continues to impact manufacturing expenses. Microsoft has reportedly alerted its partners that ongoing supply constraints and rising memory prices could result in another price increase for Xbox hardware. This situation follows two earlier price adjustments made by the company earlier this year.

Industry sources indicate that massive demand for RAM from artificial intelligence data centers is straining availability, leaving fewer components for consumer electronics like gaming consoles. One prominent leaker, Moore’s Law is Dead, shared that Microsoft sales representatives have warned retail partners about imminent effects on Xbox Series console supply and pricing. According to these reports, the company did not secure adequate RAM supplies in advance, which may lead to either significant price hikes or outright shortages in the near future.

Interestingly, the same source suggests that competitor Sony may not face the same challenges. It’s believed that Sony purchased large quantities of GDDR6 memory while prices were lower, insulating PlayStation 5 production from short-term market fluctuations. This strategic stockpiling could explain why Sony has been able to reduce PlayStation 5 prices for promotional events like Black Friday, rather than increasing them.

The potential console price increase arrives alongside recent changes to Microsoft’s subscription services. Xbox Game Pass Ultimate now carries a updated monthly fee and includes access to numerous day-one game releases, Fortnite Crew, and Ubisoft+ Classics. Subscribers will also benefit from improved cloud gaming quality and a new rewards program.

While memory costs could eventually affect all electronics manufacturers, Sony’s reported foresight provides it a temporary buffer. For now, Microsoft appears more immediately vulnerable to supply chain pressures, leaving Xbox fans concerned about both availability and affordability in the coming months.

(Source: Euro Gamer)

Topics

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