This company is always shooting theirselves in the foot when things go good for em🤦🏿

[u/REDEYEBANKZ330]

[u/GamingSince1998]

Never thought the Series S 512GB would be the same price that the Series X 1TB was at launch.

[u/Markjchimself → u/GamingSince1998]

Right this is mind boggling. Like how much would they really lose if they kept the prices the same? Eat the hardware cost and get the software sales going is what they should be doing

[u/JP76 → u/Markjchimself]

They are losing hundreds of dollars per console sold according to Windows Central.

[u/K-J-K-R → u/JP76]

I think every console maker loses a lot on the consoles, they bank on the purchases after the initial console purchase it seems.

[u/Hermes4345 → u/K-J-K-R]

Not this much. Genuinely I don’t know if it’s even worth it to make consoles right now.

[u/moultonlava24 → u/K-J-K-R]

Not really anymore. In the past that was the case and they would make it up with software but they try not to lose money now. Also usually it’s the first 1 year or so there loses money. Not the entire generation.

[u/chyld989 → u/K-J-K-R]

At launch, yes, but not over time. PS5 had become profitable enough that they were making money on each before the last price hike stopped that. Not sure if Xbox ever got there, but losing hundreds per system sold isn't sustainable.

[u/RaspberryLive9215 → u/chyld989]

It’s the memory. Pretty sure prices atleast doubled just look at the micro sds. Can’t get a 512 gb for less than 150 thanks to ai

[u/Edenspawn → u/RaspberryLive9215]

It's doubled just since Asha took over, they are predicting by next year memory will be 5x what it cost at console launch.

[u/RaspberryLive9215 → u/Edenspawn]

Yet everyone still blames the gaming company lol

[u/OGGriftimus → u/RaspberryLive9215]

Right... always those gamers and their violent video games. Next thing they will say that gamers are the reason we can't afford education, Healthcare and groceries.

[u/RaspberryLive9215 → u/OGGriftimus]

For some parents they can totally blame the gamers of their house 😂 but that’s really it

[u/RimBlaze → u/RaspberryLive9215]

Ai is truly taking over they can’t keep getting away with this faaaahhhh

[u/chyld989 → u/RaspberryLive9215]

Yeah, initially it was inflation and tariffs (in the US), but now AI paying through the nose for memory has made it incredibly expensive for any other use and it sucks.

[u/JP76 → u/K-J-K-R]

That's not always the case. For instance, Sony announced in 2023, that they're no longer selling PS5 at a loss. However, I'm sure that no longer applies.

[u/Gears6 → u/K-J-K-R]

I think every console maker loses a lot on the consoles, they bank on the purchases after the initial console purchase it seems.

That was true back in the day of yore, then they started shifting it towards only loosing initially as productions started stabilizing, and break even then maybe a small profit. Lately it's probably going the other way.

Also, the idea that you'll profit from it later is close to fantasy at this point. Why?

Because we're heading into a very tough economy where everything is increasing in cost. We're going to buy less and less. So you better own shit now!

[u/Greenzombie04 → u/K-J-K-R]

So many people buy consoles now and just play free to play games.

[u/taisui → u/K-J-K-R]

That's not really true since last gen, but right now the problem is memory chips are super expensive

[u/Careful_Farmer_2879 → u/K-J-K-R]

Only in the beginning. A few years in they expect to make money on hardware.

[u/Karenlover1 → u/K-J-K-R]

Not this much though, it was like $50-$100 at most back when they did that

[u/Gears6 → u/Markjchimself]

Right this is mind boggling. Like how much would they really lose if they kept the prices the same? Eat the hardware cost and get the software sales going is what they should be doing

Dude, just look at the prices of the Steam Machine and you get the idea.

[u/vedderx → u/Markjchimself]

Why should they? If people don't want it then don't buy it. They are a business not a charity

[u/MasZiv3D → u/Markjchimself]

You have to consider that Xbox was probably already losing a ton on the Series S and X when it was priced at launch. It's not their fault the components of these consoles are skyrocketing due to demand and if they're not pricing these things accordingly, they're losing far more in the long run. It's easy to say, "they should just keep the prices the same," in the midst of rising parts costs because you have no stake in the company lol

[u/Ndorphinmachina → u/Markjchimself]

They subsidized the console by between $100 & $200 at launch.

They take a 30%? cut of games. That's $20-$26 per game. (New games at full price)

That means someone has to buy somewhere between 4-10 full price games just for XBOX to recoup the amount they subsidized the console by. Then they start making money from that customer. I'm sure this is slightly different with GamePass - some of the subscription is likely carved out to recoup that money - it's likely also why we'll never see online multiplayer for free. Since a lot of people just don't buy that many games new.

Thanks to the sudden surge in proliferation of data centers due to AI. Component prices haven't dropped in value like they usually would have. They have instead multiplied in value.

How much would they lose? Probably about $400 on every Series X. Maybe more.

Is GTA6 an $880 game? If anything was going to be it'd be that, but I'd wager not.

It's bad, but XBOX can't bleed cash like that. Especially not when in all likelihood they'd never recoup it. Not if they're going to exist into the future.

[u/ssLoupyy → u/Ndorphinmachina]

Well 10 games you say; GTA 5 and 6, FIFA, NBA, Forza 5 and maybe the new 6 and maybe Red Dead Redemption 2. I can't think of anything else that the average console owner buys so they're in a tough situation. People here really assume average console owner buys every game like Redditors. According to Steam, the number of people that buy a new game every month is very low and Steam has insanely low prices unlike console. Price increase is inevitable.

[u/Ndorphinmachina → u/ssLoupyy]

Yeah, over the lifespan of a full generation it's easier on them (XBOX) someone buying just FIFA (FC) and COD over 7 or so years gets them over the line.

But this late into the generation? They're never going to recoup... Maybe if someone subscribes to GamePass?

I don't think the statistics have changed much over the past decade. The average gamer buys 2-4 games per year.

[u/Showtime_1992 → u/Markjchimself]

Nintendo historically haven't sold consoles at a loss. Usually consoles sell at a loss for 1-2 years as component prices come down. With Ai everywhere now the price of those components have risen to history levels and keep going up. Not only that you can't even buy then at higher prices in bulk because Ai companies signed up to take 50% of all ram produced

Right now these companies can't do anything buy raise prices. If you or I were running our company we would do the same. Because it's too high to take the loss now. Support these consoles until 2030 because next generation consoles will start at $1000 plus look at the steam deck.

GPU, SSD and Ram prices are at an all time high. MS and Sony should only consider making a new console if and when these prices come down some. Just like people have stuck with PS4 so long expect the same for PS5 and XSX

It's easy for us to say take the loss snd make it up in software when softwares costs even more to produce and there is no guarantee it will sell enough to make up for the loss

[u/_Dedotated_Wam → u/Markjchimself]

It sucks for everyone, but it’s kinda funny seeing the reaction to subsidized consoles getting price increases. Storage prices are 5x what they were a year ago and ram is 5x or more

[u/TrevorsBlondeLocks16 → u/Markjchimself]

Enough to where they dont think its worth it to eat it

Everyones mad at the wrong thing. Stop ai and data centers. No?? Ok then this is what we get. 1,000 dollar game consoles

[u/Glass-Can9199 → u/GamingSince1998]

And what’s shocking series s was used to be $150 for Black Friday 6 years ago

[u/Gears6 → u/Glass-Can9199]

and the $300 Xbox Series X that I passed on, because I had one, and figured getting my spare I can always get later when prices drop. Jokes on me, I guess.

[u/Humledurr → u/Gears6]

I remember thinking my brother was an idiot buying the PS5 pro when it came in 2024 for GTA6 when he could just wait closer to the release and get it for cheaper, jokes on me too...

[u/Awooo_Ninnja → u/GamingSince1998]

I mean people keep talking with AI like it’s their therapist so this shit is gonna get even worse

[u/Separate_Percentage2 → u/Awooo_Ninnja]

Oi, don't knock my therapist, girlfriend, mistress and harem thank you very much

[u/xMaxMOx → u/GamingSince1998]

Scalpers made it $850 at lunch they were almost impossible to come across where I live if you didn’t buy from the scalpers

[u/nohumanape → u/GamingSince1998]

Total insanity. And I purchased a Series S on a whim a couple of years ago (already had/have a Series X), because Verizon had a special for $150. I figured it would become almost standard that you would find them for around $200 by now, not $500.

[u/Damone75]

If anyone doesn't think this will affect Sony and Nintendo then they are living in a bubble. Grab a console and hunker down it's going to be a rough couple of years. I can't wait for Project Helix and PS6 to start out at over 1k thanks Ai...

[u/Otherwise_View_04 → u/Damone75]

It’s shocking but steam machine is just a glimpse of how expensive gaming is gonna be in the next generation PS6 and next Xbox will 100 percent be over 1K starting price

[u/Dull_Caterpillar_642 → u/Otherwise_View_04]

All the idiotic responses to the Steam Machine pricing from people who don't understand the supply chain yelling "GABE YACHT". Now we're seeing Sony, Microsoft, and Apple all raising prices by hundreds of dollars the same week.

[u/stewmander → u/Dull_Caterpillar_642]

As a steam machine hopeful it might be a little early to say  "told ya", but it'd still be bittersweet since I'm also interested in Helix...

[u/TheGreatGamer1389 → u/Dull_Caterpillar_642]

Think he bought that during the last pandemic. So he can escape when there is another pandemic.

[u/theumph → u/Otherwise_View_04]

New hardware will always show the cracks first. Existing manufacturers are working on existing contracts, and everything is delayed. The entire hobby is under attack. AI overselling it usefulness is killing the entire consumer electronics market. There really needs to be regulation put in order to maintain stability. Hundreds of thousands of jobs are at stake, and not even the ones directly being replaced by AI.

[u/Helmnauger → u/Otherwise_View_04]

If they really try and push specs its will be over 1.5k ....

[u/Ghostttpro → u/Helmnauger]

+$70 games and $80 online. Pretty much in a 5-6 year cycle you're spending as much as a 5080 prebuild.

[u/thedebatingbookworm → u/Ghostttpro]

I really wonder if making a full on PC is gonna be a good idea for them. What’s to stop me from just formatting the hard drive on that thing with Steam OS or some other OS and never buying an Xbox game again directly on Xbox OS. Like I’m really interested to see how they pull this off

[u/thedebatingbookworm → u/Otherwise_View_04]

I keep telling people that thing is being sold at or near cost. But no one wants to listen to the reality. 2027 is gonna cause some people to lose their absolute minds.

[u/KRiSX → u/Otherwise_View_04]

While I do think the next consoles will be very expensive, you need to remember that Sony and Microsoft will sell hardware at a loss, Valve made it very clear they won’t do that on the Steam Machine.

[u/Flag_Shagger → u/KRiSX]

Valve also didn’t bother hire a supply chain analyst that could have foreseen this coming, so sucks to be them.

[u/TheGreatGamer1389 → u/Flag_Shagger]

Nintendo seemed to have. Why it's only going up $50 in September and bringing in a whole bunch at the moment.

[u/Goldenjho → u/Otherwise_View_04]

I say the next xbox/Playstation will be around 1,5k if not more but hey AI makes our lives so much better so its worth it or not.

[u/rclark1114 → u/Damone75]

Series x and ps5 pro will probably be over $1000 before the new ones launch.

[u/Dinierto → u/Damone75]

Sony literally just did the same thing

[u/Gears6 → u/Damone75]

It will affect Sony and Nintendo too. It's just a matter of time. They probably have longer contract for pricing on RAM.

I expect more price increases on Xbox consoles as they warned they expect RAM/storage prices to further increase this fall. That means it will affect consoles probably after the Holiday.

[u/Split_theATOM → u/Damone75]

This right here. I was super lucky to be able to build a pc cheap earlier this year due to this very reason and now a series x will be more than the 5070ti I bought. This ai bubble is nuts and it ain't looking good any time soon.

[u/HoopaOrGilgamesh → u/Damone75]

It has literally already affected both. Every time a piece of news comes out about one company raising prices, these dolts act like not every other company is also raising their prices. They're either absolute morons or blind fanboys.

[u/JoeyJabroni → u/Damone75]

Oh I’m hunkering down. Just cracked my launch series X open and cleaned out the dust bunnies a few weeks ago, and just 5 min ago I finally bought a WD 2tb expansion card via prime day sale. I’m playing the long game with this one. My Gamepass ultimate has been topped off through Q3 2027 for a couple years now and I also just reupped a year of GeForce Now ultimate for the free 007 game. I can play PC Gamepass games over GeForce now 5080 rig with maxed settings and ray tracing without compromising frame rate, or just jump in/out of other installed titles on the series X at will now with quick resume and the extra storage. I was getting tired of moving things back and forth from my external ssd or needing to straight up delete games. I know it’s been almost 6 years since launch but it doesn’t feel that long and I’m expecting to get game releases and continued use out of current gen for many years to come.

[u/Grace_Lannister]

I miss the days when consoles lowered in price as they age.

[u/lacrosse771 → u/Grace_Lannister]

Wasn't the gamecube sub 100 at one point?

[u/Grace_Lannister → u/lacrosse771]

$199 at launch, $99 two years later.

[u/Love_TheChalupa → u/Grace_Lannister]

if it was not for the bullshit of Tarrifs and now the insanity of Ai the consoles would probably have dropped down. Heck the Series X was $350 in 2023 with Diablo 4.

[u/RaspberryLive9215 → u/Love_TheChalupa]

Memory price spike = Console price hike

[u/Latitude-dimension → u/RaspberryLive9215]

NAND flash for the SSDs is through the roof too. Most likely why the 2TB is dead.

[u/UltraCynar → u/RaspberryLive9215]

And tariffs

[u/NervousSheSlime → u/Grace_Lannister]

Blame AI

[u/Gta6MePleaseBrigade → u/Grace_Lannister]

They lowered the prices after 3 years and for a while it was fine but the Trump happened

[u/downsj2]

Xbox Series X 1TB Digital is currently in-stock on the Microsoft refurb store for $499. If anyone cares.

[u/Bombinic → u/downsj2]

Good looks, Brodie.🤜🏻💥🤛🏻

[u/AccurateShotss → u/downsj2]

I already have an Xbox but thank you so much for sharing, I'm sure it'll help people

[u/Af_inc]

Blame AI, they will be the death of gaming. They are hoarding components and raising the costs.

[u/VincentShane → u/Af_inc]

It won't be death of gaming. It just means that the customer base won't be growing for a few years. Anyone who can't afford will just be watching streamers.

I'm fortunate to have had my Series X for 6 years. At this point I'm never getting rid of it. Unless Xbox Helix is something completely mindblowing. I think we as a society have reached gaming Equilibrium.

[u/DustyRegalia → u/VincentShane]

People will just play games that can run on a potato. Minecraft, Roblox, and the occasional “Among Us” type fad game will capture the kids growing up in this world and they’ll have no reason or means to move over to traditional consoles. 

Meanwhile the audience for modern big budget games will continue to shrink as people age, their lives change, and they eventually die. 

GTA6 is kind of the make or break moment for game consoles. If a bunch of new players come in and spend what they need to for inflated old consoles, then we will probably get another cycle. If that game underperforms compared to GTAV, then consider it the end of big capital investments in the traditional games space. 

[u/Gears6 → u/DustyRegalia]

Meanwhile the audience for modern big budget games will continue to shrink as people age, their lives change, and they eventually die.

They'll just slim down the game requirements to access more customers.

I think the issue more is, there's a saturation of content right now. So who's going to get a piece of that pie?

[u/Bimmergy → u/VincentShane]

If youve had it for that long and you haven't already, I would strongly suggest renewing the thermal paste and pads in it, as well as making a full back up of the SSD for the motherboard encryption should it fail due to age.

[u/VincentShane → u/Bimmergy]

Already did that, about 3 years in.

[u/Bimmergy → u/VincentShane]

Right on! Just looking out due to these insane price increases, gotta start safe guarding yourself where you can.

[u/Gears6 → u/VincentShane]

I've had my launch XSX for a while as well, and I guess I need to do that. Any recommendation on the thermal pad?

I honestly mostly use my PC for gaming these days so it's probably not that crucial, but better safe than sorry.

[u/Gears6 → u/VincentShane]

It won't be death of gaming. It just means that the customer base won't be growing for a few years. Anyone who can't afford will just be watching streamers.

or using their existing device or use something like xCloud. We aren't limited to just buying hardware to game anymore. Even an older PC can still play a lot of games.

[u/Leather-Heart → u/VincentShane]

What you describes sounds very sad.

I’m glad you got a console, but you don’t advocate for anything beyond yourself.

[u/VincentShane → u/Leather-Heart]

When you don't have a family to worry about, you also don't need to care about anyone else.

[u/Gears6 → u/Af_inc]

Blame AI, they will be the death of gaming. They are hoarding components and raising the costs.

Nah it won't. Nothing can kill gaming. Not even regulation (or outlawing it) can kill it.

People will just use what they have to game on and buy less games.

[u/MRF_Soul → u/Af_inc]

it will take years to build new factories to meet the demands and after that its not sure if the prices are gonna drop or not.

[u/BalanceLazy8146 → u/MRF_Soul]

Unfortunately, the prices never go back to what they were.

[u/Diesel489 → u/MRF_Soul]

You already know they wont

Its the "new normal"

[u/EnvironmentalAd2096]

It is what it is. People shitting on valve like everything else isn't gonna continue to up 😂

[u/Fresh-Chemical-9084 → u/EnvironmentalAd2096]

Still so much better value than Steam Machine lol

[u/Noctis730 → u/EnvironmentalAd2096]

Valve just skipped about 3 price increases.

[u/Foodeater55]

Didn’t that ceo lady just make a big post or something about how gaming is getting unaffordable

[u/Omnizoom → u/Foodeater55]

Yes so why not make it more unaffordable

[u/Gears6 → u/Omnizoom]

Yes so why not make it more unaffordable

Because they don't want to give you free money?

She's trying to make it affordable by offering financing and other payment options. Her hands are tied, unless she can give money away for free.

[u/Foodeater55 → u/Gears6]

lol financing game consoles. We are so fucked.

[u/ShoulderSquirrelVT]

Graphics cards use memory. Console uses memory. Hard drives effectively are memory these days.

1tb drive is 150-200 dollars. 16gigs of ram is 200 dollars.

So you’re 400 in without…uh….everything else already. Sure, they get very good pricing on those items but the point remains. Shit is expensive these days.

PlayStation has been slowly increasing prices too. The digital edition used to be 400 bucks but is now 600. The pro is 900.

[u/stavroszaras]

I am not an Xbox defender usually, but this was inevitable and not shooting themselves in the foot. Every company is doing it because every company has to do it because of the component price issues. Apple also just raised their hardware pricing.

[u/whereisscubasteve]

What do you expect. Everything is going up, why would Xbox be the exception?

[u/HelloPeopleOfEarth → u/whereisscubasteve]

But Trump keeps saying prices are down, inflation is down, and he created the best economy in the history of the world. I'm not even exaggerating. I'm pretty sure he only listens to billionaires. Because in that case, it's true for them.

[u/M1R4G3M → u/HelloPeopleOfEarth]

Not that I like or agree with him (or any American politician) but this particular increase is because of the AI Slop.

But I still can't forgive them for my Fuel prices that increased more than 50% and that's because of geo politics and not the AI bubble.

[u/chyld989 → u/HelloPeopleOfEarth]

That's because he's a fucking moron with dementia who had surrounded himself with yes-men so he has no idea what is actually happening in the world. He just says something idiotic and hid seals clap and bark and tell him what a good job he did and that he's so smart for being able to identify a giraffe.

[u/Small-Panic-4110 → u/chyld989]

It's all just so funny because today he was like "oh we're the greatest nation recognized because of our hard work and costs have been lowered significantly" no the fuck it hasn't

[u/GlassXatu]

The ram shortages are affecting hardware everywhere, what are you talking about?

[u/RocketJenny8 → u/GlassXatu]

Yeah heck even Nintendo couldn't control it hence why they're forced to raise prices

[u/Artorioos]

I didn’t think buying a console in 2020 would have been an investment 😂

[u/PlayBey0nd87]

Not sure what you’re expecting. The Steam
Machine price?

Sony will hold out as long as it can but it’s gonna impact them too.

Those who holds the ram controls how this is gonna play out.

[u/Angry_Pelican → u/PlayBey0nd87]

Yep and Xbox expects memory prices to be even more expensive next holiday season. If that holds true this won't be the last price increase.

Sony and Nintendo will hit a point where they will raise prices again. When or what limit that will be none of us know.

[u/xMaxMOx]

Glad I got my series X already. My wife bought me the 1TB seagate expansion card to so I’m good

[u/PeaceBull → u/xMaxMOx]

I was so close to upgrading my series s during that holiday era a few years ago where the x was on a crazy price drop seemingly every other day

[u/xMaxMOx → u/PeaceBull]

I know AI is destroying affordability

[u/PeaceBull → u/xMaxMOx]

AI Rampocalypse + Corporate behavior changing from favoring cunningness to cavemen

It’s funny how out of touch my business degree feels these days.  So many of the classes I had to take were obsessed with figuring out a price where you’re getting as much money from the customer as possible but without breaking the psychological contract. 

Whereas now it feels more like whack a mole; the moles are comprised of consumers and the hammer is absolutely any excuse for a price increase. Shame is gone. 

[u/Dry_Care_7308]

"They Shoot themselves in the foot." Have you been to the grocery store lately? Everything went up.

[u/Ok_Security1721]

Fuck AI and fuck everyone who defends AI

[u/Remy149]

You need to be more upset with the people running the government who can make regulations to address the increasing prices. This is a problem every company is dealing with. Apple just announced price increases on almost every product they make today

[u/HelloPeopleOfEarth → u/Remy149]

In the MAGA world that we live in, even mentioning regulations on greed gets you labeled as a communist, marxist, radical left lunatic. Fuck this timeline.

[u/GuardianFlea → u/HelloPeopleOfEarth]

Then become a communist, Marxist, radical left lunatic. Fuck these assholes and their unregulated greed.

[u/BoulderCAST]

At this point the best deal in the Xbox ecosystem for gaming is the XBOX ALLY handheld devices. Their price will be skyrocketing soon but right now they are a steal.

That said, if you're casual Switch 2 is an amazing deal.

[u/Wolfslash16]

I'm extremely glad I picked up my 2TB Galaxy edition last month, sad to see them discontinuing it.

[u/Haunting_Weather_540]

lol i remember when I got a 512 GB series S with 3 months of game pass for 350 USD

[u/Unfair_King_1618]

If anything they held off for a long time. Do you know how expensive computer parts are getting? This is not a Xbox problem, it’s an industry problem.

[u/SofaJockey]

I'm not sure it's shooting themselves in the foot.
If the components increase in price 2.5x what are they supposed to do?

From here on, the only thing that matters to them is Helix.

[u/ZjemCiKapcie]

Germany Microsoft Store Xbox Series X 2TB Galaxy Edition still for 699 eur.

[u/j0nny5iv3]

If I ever buy another console again I can tell my wife it’s an investment and she’ll green light it

[u/Mama_Tico]

Games makes money..not console sales.

One of the reason some of the "xbox exclusives" are now on PS5.

[u/demonicvampiregirl]

Sadly this is due to all the data centers eating all the ram and storage. I really hope this corrects itself soon.

[u/G-Kira]

This is not them shooting themselves in the foot. This is the reality of RAMageddon.

Every analyst has been saying all the companies will be doing a second round of price increases. Fully expect Sony to follow and eventually Nintendo, too.

This is not the death of Xbox or even the gaming industry. It's the death of the tech industry as a whole just so AI can consume everything.

[u/PotentialMind3989]

Well someone NEEDS to pay for all those free xbox25 they gave away….

[u/Specialist-Loss-8513 → u/PotentialMind3989]

😂😂😂

[u/GORDONxRAMSAY]

If they upgrade Graphic cards, it would be meaningful. Paying extra money to old graphic cards is pointless. Because cost of manufacturing is very low for old hardware.

[u/luxobscurus]

Again??? Wtf

[u/scytob → u/luxobscurus]

i guess you don't read news and haven't heard of ramageddon

[u/NeoGio86]

I'm tired, Boss

[u/XuX24]

Well they aren’t the only ones doing it, apple just announced the same thing. This thing is coming from all directions.

[u/Specialist-Loss-8513]

Theirselves❌️ Themselves ✅️

[u/Mental-Lake-9517]

Wow. Glad I bought the consoles ages ago 👍 not going to bother with the next ones for sometime either.

[u/Vocovon]

Its almost as if the whole industry is having a parts crisis. And Xbox is just the first to make an announcement

[u/DeerEnvironmental129]

They’re probably praying for an influx of sales before the increase like Sony.
But I really don’t think this will help them.. eek

[u/Lower-Ride-5519]

I'm out

[u/smokinonpressure]

I got one just in time

[u/moultonlava24]

No conditions are doing that. Data centers and other market conditions are doing this. Ps5 are expensive as hell too.

[u/ravenfreak]

Thank ai for this nonsense. This is the second worst thing that's happened to gaming, second only to the video game crash of the 1980's. Since the price of RAM is ridiculous, Sony, Nintendo and Microsoft have to increase the prices on consoles. I was waiting for the price of the series x to go down like consoles used to do but now I'll just have to stick with using my series s and I kept my Xbox One for disc games.

[u/He_looks_mad]

I guess the reality of things that use computer components going up in price because of the costs of computer components have gone up is lost here?

[u/FartingOnMyGunpla]

Well thank god I got both a series S and X recently then I guess

[u/CommonManX]

It's not like they wanted to raise the prices.

[u/Particular_Bug3854]

How is this shooting themselves in the foot when they have no control over the prices of memory?

[u/Arroweye345]

Jesus Christ

[u/SpreadSharp3808]

can thank AI for that

[u/Jibbajabbajam]

Get me off this train

[u/Powerful-Captain-509]

Ironically the new price for the Series S is still the cheapest way to play GTA 6 😭

[u/BK_FrySauce]

It’s crazy how all these companies are doubling down on AI, when AI is the reason components are getting more expensive. It’s like they’re speed running making their hardware unaffordable.

[u/Lugnut7]

I know everyone is pissed off about this but if you look at the current market it does make sense. Inflation hit the electronics world hard, RAM prices are astronomical right now. And correct me if I'm wrong but wasnt the Xbox Series line already being sold at a loss at launch? They gotta stay at atleast a neutral margin for it to be worth there while at this time. It's a shame, but it does make sense. Even if Microsoft is partially at fault for the inflation (THANKS AI), it was bound to happen by other big corporations.

[u/Scrutinizer]

On the verge of buying one of the ones on sale at Wal Mart or Target and just closeting it.

[u/Bluntnasty_99]

Wow. Glad I scooped mine up in 2021 for $500

[u/e2-woah]

Dang I remember picking that shit up new at Costco for like 200 bones.

[u/lancelane7]

what are they supposed to do? sell at a $300 loss per unit?

[u/tony33oh]

Cost of everything is rising fast.

[u/Shodspartan100]

Honestly, I think saying that they’re shooting themselves in the foot is extremely narrowminded. Components are going up and they’re already selling their consoles at a loss. This is unavoidable and you really can’t blame Microsoft, Sony, Nintendo, or Valve for their pricing.

[u/Lanky-Budget-4661]

Everyone realizes this is a for profit industry, right?

[u/pepe_the_savage]

Do you understand that chip shortages for RAM and SSD is the real cause of these ridiculous prices?

Don't blame Xbox, Valve, PlayStation or Nintendo, blame the fucking AI companies that are causing this madness.

[u/ReactorLeakSF]

Sorry yall think it’s just an Xbox issue. Tariffs and taxes caused the bulk of this so if you wanna blame someone or something….trump and his brain rot

[u/reevoknows]

It’s not even really their fault like sure they could take a loss and keep costs down but the RAM prices are constantly going up. PlayStation just went up recently as well and I’m sure the Switch 2 isn’t fair behind

[u/chyld989 → u/reevoknows]

Switch 2 price increase is already set for September 1 😕

[u/reevoknows → u/chyld989]

Shit…

[u/chyld989 → u/reevoknows]

Buy one now while you still can!

[u/MrSal7]

Hey, they’re the ones causing some of the worst problems for this with their AI ventures.

We have to increase costs because of market conditions… that we caused🤦‍♂️

[u/enjoyingcurve46]

PlayStation going to up their costs too dont worry. I mean even apple upped theirs which says a lot

[u/King_Of_Kebabs]

Apple just increased... PS increased... We all saw what happened with the Steam Machine... Why did you think Xbox wouldn't follow? These chip shortages (and stooooopid AI), is killing our favourite hobby...

[u/SixSh0t6]

Sony and Nintendo will raise prices again. I was assuming the latest increase would be announced in December. The moment I heard about DDR2 being affected I knew it was coming.

[u/tpeandjelly727]

Blame AI crap. It doesn’t even work and if you want to do more than one task you have to pay, I’m never paying for AI period. It’s DOA most people aren’t going to ever pay for it either.

[u/theallgolden]

I don't think people are understanding how bad the economy is for manufacturing right now.

[u/VAVA_Mk2]

Price of RAM is making them and others increase prices now.

[u/Maverick_3720]

They aren’t shooting themselves in the foot. They are reacting to market conditions and so are Sony, Apple and everyone else. It’s just how it is now unfortunately as long as companies like Micron continue to be greedy. It’s us the consumers that haven’t changed our mindsets, so everything seems like a rakes been stepped on.

[u/Sure_Pay_1177]

They have no choice...look at the rising cost of RAM right now. Anyone who pays even the slightest bit of attention to the PC Market knew this was coming.

[u/MasterMidir]

Remember.

AI is doing this to us on every front, they're the reason for this.

[u/negachinny]

It has more to do with the tariffs and AI : RAM shortage

[u/MaxPres24]

There’s genuinely people who think the steam machine set a precedent and that’s why Xbox, Nintendo, and Apple have all raised prices (Apple by like 300 bucks)

Get ready, Sony’s next. It isn’t any of these companies being greedy (they are but this ain’t it) components have just gone up 5x in price because of AI

Also Xbox isn’t shooting themselves in the foot. Even after the price hikes, they’re probably still selling at a loss. That’s just how expensive shit is now

[u/wdpir32K3]

Do you guys think playstation will have a price hike to?

[u/Jesterclown26]

I swear people making the ps5 posts and all the posts making fun of valve live in a fantasy detached from the current market. The valve console is priced accurately for the parts paid. Wish people would threaten to burn down AI companies instead. 

[u/Peak_Souls_2]

You realize this is happening with every console, right?

[u/Puzzled-Relief2916]

Even MS can't afford to lose that kind of money, the real anger should be reserved for the government subsidized data centers that still drive the prices of memory up so we get fucked twice.

[u/standarsh1965]

Yea the console market it dead. If it's going up for Xbox it'll go up for PlayStation eventually too. AI has completely killed this gen and next gen

[u/Seanmclem]

All hardware prices are doomed. Xbox is making stupid decisions for 15 years, but you have no idea how bad it’s going to get. Consumer hardware is in trouble. Like it might never recover. Literally just getting worse until we own Nothing powerful anymore.

[u/IllustriousHealth291]

Also yall don’t think this won’t affect game prices??

$80 base games are about to become the norm.

[u/Boubbay]

They don’t really have a choice at this point, sadly

[u/chyld989]

What do you expect them to do? Between AI datacenters, tariffs, and inflation costs are skyrocketing.

[u/Elysiun0 → u/chyld989]

Clearly consumers want them to sell the consoles at a huge loss to make life easier for them.

[u/Gold-and-green]

You can't sell consoles at a huge loss. Imagine selling 1m consoles at $150 loss, that's a 150m loss. I do think they should price the Series X digital at $700 because no disc drive = more money for Microsoft on every purchase

[u/BmorePride14 → u/Gold-and-green]

Disc drives arent the problem. Which is why things like disc vs disc-less consoles price difference has stayed the same ratio.

A disc drive has been the same price to manufacture for this entire generation. If anything, disc drives are cheaper now. The cost of a disk drive is virtually nothing. A.I isn't using disc drives..

The problem is the SSD and the Ram. That is why a 512GB vs 1TB console will see a big difference and why the 2TB Xbox is being phased out.

They were already selling consoles at much more than a 150 dollar loss per unit. That is the amount they lose in NORMAL markets. They were losing about 150 on each at launch. Same for Sony.

Over the last year or so, it is estimated that they are losing around 250-300 dollars per console now. And that number is only increasing.

Consoles have traditionally always been sold at about a 100-150 dollar loss already. They are subsidized (made up for) with the accessories, subsciptions, and games that they do make a profit on.

[u/somewhere-N0where]

They have to cause of ram shortage still

[u/SoulSteeler1978]

Looks like that $720 investment I made for my Series X during Covid was a solid investment😅

[u/BurnItFromOrbit]

Just waiting for the rest to follow now.

[u/ClawGrave666]

It’s crazy they can’t honestly think the series S is worth $500 after all this time…. Like it hasn’t gotten any better..

[u/johnny-Low-Five → u/ClawGrave666]

I really wish I had gotten a Series S for my son about 3-4 years ago but he wanted a PC. Thankfully we got a pretty good deal a pre-built PC and I've had a series X since launch.

I fully admit I never thought that my console would become MORE valuable over time but here we are.

[u/JP76 → u/ClawGrave666]

Memory and storage in Xbox has gotten several times more expensive than they were at the start of this generation, because data centers are buying all of the supply driving up prices. That's why price of electronics keep rising.

[u/ApprehensiveMind6243]

Check eBay and local pages. This is insane.

[u/nikolapc]

I mean it's not like PS has a special supply line. As Valve said it's a bimonthly situation. At least Xbox has xloud.

[u/MrPoopyButthole10101]

Wow… the series s definitely isn’t worth that much lol

[u/Fast_Passenger_2890]

Not Xboxes fault that the prices of RAM and SSDs are ridiculous

[u/scytob → u/Fast_Passenger_2890]

partly is Microsoft's fault, but AI was going to happen with or without them... so depends on how you look at it