Xbox Consoles Have Become Much More Expensive in Portugal: See New Prices

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Microsoft has significantly increased the prices of its Xbox Series X and Series S consoles across Europe, with these adjustments taking effect in August. Some models have seen price surges of up to 200 euros. These price hikes are a direct consequence of ongoing issues in memory component production. Microsoft is currently incurring a loss of approximately $150 on each Xbox console sold, attributed to a lack of long-term, fixed-price contracts for RAM and SSDs. In contrast, Sony has secured sufficient memory supply to maintain stable PlayStation 5 costs through at least March 2027. Separately, Nintendo recently launched its exclusive title Splatoon Raiders. This comes ahead of a confirmed U.S. price increase for Nintendo consoles, which will rise from $449.99 to $499.99 on September 1.

Microsoft officially confirmed the price adjustments for its Xbox consoles in Europe on August 1, after having previously shared new U.S. pricing and leaving European consumers awaiting details. The original announcement did not specify the exact Euro and GBP increases for different storage sizes, only disclosing new U.S. figures. With these changes now officially in effect, the European price increases are substantially greater than initially anticipated. For example, the Xbox Series S with a disc drive has jumped from 299.99 euros to 429.99 euros. The new pricing reality sees the Xbox Series S move away from its positioning as an affordable console, while the Xbox Series X now carries a price substantially higher than at its original launch. The specific new prices for European markets are as follows: Xbox Series S (512GB): 499.99 euros (previously 349.99 euros) Xbox Series S (1TB): 599.99 euros (previously 399.99 euros) Xbox Series X Digital Edition (1TB): 749.99 euros (previously 549.99 euros) Xbox Series X with disc drive (1TB): 799.99 euros (previously 599.99 euros)

This marks a difficult phase for Xbox. Sony also increased PlayStation 5 prices due to similar component production challenges. However, Sony’s console continues to sell exceptionally well, while Microsoft is focused on regaining market share. For the first time in gaming history, all console makers are raising prices concurrently, at a time when price cuts might be expected due to inflation or market correction. Microsoft previously raised its Xbox console prices twice last year before this latest change. The current adjustment means an Xbox Series X with a disc drive costs 300 euros more than at its launch. The Series S has become 50 euros pricier overall since its original price point. With these significant price increases, Microsoft has lost an opportunity to offer a more accessible console, which could have attracted players looking for titles like the upcoming Grand Theft Auto VI, scheduled for release in Europe and North America.

Shareholder Profit Pressure Forces Xbox Layoffs and Studio Cuts Despite Falling Revenue

At the management level, there is pressure on Xbox to generate greater profitability. The brand is navigating a challenging period, with game revenue from subscriptions down 10 percent in the last financial quarter alone. This financial necessity has resulted in thousands of layoffs across affected sectors, impacting established studios like Bethesda Softworks and id Software. These corporate restructuring decisions, driven by shareholder demands for immediate quarterly earnings improvements rather than sustainable growth strategies prioritizing customer retention through affordable product offerings, have presented existential threats to these studios.

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