Microsoft to Hike Xbox Prices by $150, Contributing to 1.7% Asia-Pacific Slide
MSFT•Microsoft will raise Xbox console prices by up to $150 worldwide to offset surging memory and storage chip costs, mirroring Apple’s hikes on iPads and MacBooks. The announcement helped drag Nasdaq futures down by 0.6% in Asia and contributed to a 1.7% drop in MSCI’s Asia-Pacific index from record highs.
1. Xbox Console Price Increases
Microsoft announced price increases for its Xbox Series X and S consoles by up to $150 globally, citing rising memory and storage chip costs. This marks the first major price adjustment since the consoles’ launch to preserve margins as component inflation accelerates.
2. Market Reaction in Asia
The broader tech sector reacted negatively, with Nasdaq futures sliding 0.6% in Asia following the announcement. Additionally, MSCI’s Asia-Pacific index fell 1.7% from its recent record high as investors weighed the impact of cost-driven price hikes.
3. Chip Cost Pressures
Analysts point to surging demand for advanced memory and storage chips outstripping supply, driving manufacturers from Apple to Microsoft to pass costs on to consumers. Continued chip-related inflation could pressure hardware sales volumes and profit forecasts across the gaming and consumer electronics markets.
