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Microsoft Still Losing About $150 on Each Xbox After August Price Hike

Rising memory and storage costs driven by AI demand are eroding console margins and could push Xbox to protect its storefront revenue.

Overview

  • Multiple outlets reported Wednesday that Windows Central journalist Jez Corden says Microsoft will likely still lose roughly $150 on each Xbox Series X|S sold even after the price increases that take effect August 1.
  • The company announced mid‑July increases of $100 for the Series S and $150 for the Series X to offset rising component costs but those hikes do not close the alleged per‑unit loss.
  • Reporters and industry sources attribute the shortfall to sharp spikes in DRAM and NAND storage prices caused in part by growing AI infrastructure demand.
  • Xbox CEO Asha Sharma has acknowledged the cost challenge and told staff Microsoft is exploring business and product innovation while warning component prices could double again by fall 2027.
  • Analysts and insiders say continued hardware losses could pressure Microsoft to change Project Helix plans or favor its own PC storefront to recoup revenue, and observers should watch pricing, store policy, and Game Pass conversion rates for signs of that shift.