Xbox Price Hike Announced for UK and European Markets

Microsoft has confirmed that Xbox console prices will rise in the UK and Europe, with increases ranging from £130 to £170, following global price hikes announced in June. The new prices for the UK and Europe are as follows: In the UK, the Xbox Series S 512GB will now cost £429.99, up from £299.99, while the 1TB model will increase to £519.99 from £349.99. The Xbox Series X 1TB Digital will now be priced at £619.99, a rise from £449.99, and the Xbox Series X 1TB Disc will cost £669.99, up from £499.99. In Europe, the Xbox Series S 512GB will increase to €499.99 from €349.99, the 1TB model will rise to €599.99 from €399.99, the Xbox Series X 1TB Digital will now cost €749.99, up from €549.99, and the Xbox Series X 1TB will be priced at €799.99, a rise from €599.99. Microsoft attributes the price increase to higher storage and memory costs. The company has also discontinued the 2TB model, citing a more than 2.5x increase in console storage and memory prices, with another doubling expected by the fall of 2027. The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles, which are typically sold at a loss. Following the June price rise announcement, Xbox underwent significant restructuring, including layoffs and the divestment of five studios. Microsoft reported a $1.7 billion decline in Xbox revenue in 2026, with hardware sales dropping 29% year-on-year due to lower console sales. Xbox CEO Asha Sharma stated that the firm will learn from past successes and failures and focus on creating what players will love for decades. Although Xbox gained over 200 new players in FY26, the business did not grow with the audience, and Sharma noted that the company needs to invest in what players value to close the gap. Microsoft CEO Satya Nadella stated that Xbox leadership is making the necessary decisions to reset the business for long-term growth, and the company expects to return to growth by the end of 2027.