Xbox Series X/S Price Hikes Hit Europe Hardest as Microsoft Blames Component Crisis

Microsoft has increased the price of its Xbox Series X and Xbox Series S consoles across Europe and the United Kingdom, revealing figures that far exceed the hikes previously outlined for the United States. The new pricing sees the Series X disc model jump 48 percent in the UK — from £499.99 to £669.99 — while the Series S 1TB model in Europe now costs €599.99, up from €399.99. For players who have held off on upgrading this generation, the timing could not be worse: Grand Theft Auto 6 is expected to launch in November 2025, historically the kind of system-seller that drives hardware demand through the roof.

The increases were first teased by Microsoft in June 2024, when the company cited a components crisis that has seen storage and memory prices rise more than 2.5 times their previous levels. At the time, Microsoft warned that another doubling of those costs is expected by fall 2027. What remained unclear until now was exactly how those pressures would translate into local currency pricing for European and British consumers. The answer, now public, is substantially steeper than the US adjustments — a disparity that has left the community stunned and vocal about the platform's value proposition heading into the most anticipated game launch of the generation.

Microsoft's European Price Hikes Detailed

Microsoft just dropped new price lists for every Xbox Series X and Series S version in the three big markets. In the U.S., the changes match what was hinted back in June: the 512‑GB Series S now costs $499.99—an increase of $100; the 1‑TB Series S moves up to $599.99, thanks to a $150 hike; the 1‑TB Series X Digital Edition jumps to $749.99, another $150 bump; and the 1‑TB Series X with disc drives opens at $799.99 after a $150 rise. Microsoft has pulled the 2‑TB Series X from shelves, presumably because it would have become too expensive to be worthwhile making.

In the United Kingdom and mainland Europe, however, the increases are significantly larger in both absolute and percentage terms. The UK sees the Series S 512GB jump £130 to £429.99, the Series S 1TB rise £170 to £519.99, the Series X Digital climb £170 to £619.99, and the Series X Disc model surge £220 to £669.99 — a 48 percent increase. European pricing follows a similar pattern: Series S 512GB moves from €349.99 to €499.99, Series S 1TB from €399.99 to €599.99, Series X Digital from €549.99 to €749.99, and Series X Disc from €599.99 to €799.99. These figures place the flagship disc console at nearly €800 and £670 respectively, levels that would have been unthinkable at the generation's launch in 2020.

• Discontinued: Xbox Series X 2TB model removed from lineup
• Announcement timing: Price hikes previewed June 2024, final regional pricing confirmed now

Microsoft’s Steepest Price Hikes Hit Europe First

Microsoft's explanation for the increases centers on a component cost crisis that the company says affects consoles disproportionately.

"The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles," Microsoft stated in June. "Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make."

Microsoft

The company noted that storage and memory prices have already increased by more than 2.5x, with another doubling expected by fall 2027.

"The spiralling cost of new and existing consoles would require 'radically different business models' over the coming generation" and that the industry had "reached a point where it will be hard to imagine" mass audiences affording "thousands of dollars" for a new console generation.

Asha Sharma, Xbox CEO

The community reaction has been immediate and harsh. On ResetEra, one user called it the "final nail in the coffin" for Xbox's competitive positioning. Another noted sarcastically: "Great strategy, that'll definitely lead to more sales." A third wrote: "There is no way in 2026 I would be paying nearly £700 for a Series X with a disc drive." Perhaps the most striking comparison came from a European fan: "Still trying to process how a console that was sold for €499 almost six years ago is now €799." Another highlighted the inversion of the value ladder: "The Series S 1TB is now €100 more expensive than the Series X at launch. This is just mindblowing." These sentiments reflect a broader anxiety that the traditional console model — subsidized hardware recouped through software and services — may be breaking under the weight of silicon economics.

Microsoft isn’t the only one hiking prices. Sony did the same for the PS5 in March 2024, saying it faced persistent global cost pressures. Nintendo has already raised Switch 2 prices less than a year after launch. Valve missed its Steam Machine target and finally sold it for $1,049. The pattern differs in size and timing: Xbox’s European hikes are far steeper than its U.S. increases. These jumps hit months before Grand Theft Auto 6 drops, the game set to spark a wave of new hardware sales. With Europe already a tough market, putting the entry‑level Series S 1TB above the Series X launch price could hand the GTA 6 upgrade chase to PlayStation 5 anyway.

The question now is whether Microsoft can sustain momentum into the GTA 6 window with hardware priced at levels that would have been considered premium-tier just two years ago. The company's own leadership has signaled that the current model is unsustainable, hinting at "radically different business models" for the next generation. For the current one, European players face a stark choice: pay a steep premium for Series X/S hardware, wait for potential holiday bundles that may never materialize at the old prices, or look across the aisle at a PlayStation 5 that — while also increased — remains cheaper than a disc-drive Series X. The component crisis Microsoft cites is real, but the regional disparity in its pass-through to consumers may prove the more lasting damage.