The price of Microsoft's entry-level Xbox Series S console, which once sold for around 399,000 won ($252), is expected to climb into the mid-600,000 won range in South Korea. Microsoft has announced another round of price increases for its Xbox consoles, citing a sharp rise in memory chip costs. This image was generated by AI and is unrelated to the article.
The price of Microsoft's entry-level Xbox Series S console, which once sold for around 399,000 won ($252), is expected to climb into the mid-600,000 won range in South Korea. Microsoft has announced another round of price increases for its Xbox consoles, citing a sharp rise in memory chip costs. This image was generated by AI and is unrelated to the article.

Microsoft's entry-level Xbox Series S console, which once retailed for around 399,000 won ($252), is expected to climb into the mid-600,000 won range in South Korea. The company has announced another price increase for its Xbox lineup, citing surging memory chip costs — a ripple effect from the expansion in AI data center investment that is now pushing up prices on consumer gaming hardware.

According to industry sources, Microsoft will raise Xbox console prices starting Aug. 1.

In the United States, the Xbox Series S 512GB model will increase from $399 to $499, while the 1TB model will go from $449 to $599.

When the Xbox Series S 512GB launched in South Korea, it was priced at 398,000 won — equivalent to roughly 1,331 won per dollar based on the then-US price of $299. Applying the same exchange ratio to the new $499 price yields approximately 664,000 won, about 266,000 won more than the original launch price.

Higher-end models are also getting more expensive. The Xbox Series X digital edition will rise to $749, while the standard disc-drive model will go to $799 — increases of more than $150 over current prices. The 2TB Xbox Series X model will be discontinued.

Microsoft attributed the increases to rising costs for storage and memory chips, saying prices for console storage and memory have already climbed more than 2.5 times and are expected to nearly double again by fall 2027.

Xbox Series S 512GB [Microsoft]
Xbox Series S 512GB [Microsoft]

Industry analysts say the spread of AI data centers is a key driver behind the console price hikes. As big tech companies pour money into AI infrastructure, demand for DRAM and NAND flash memory has surged, and the resulting price pressure is spreading from servers to consumer devices including gaming consoles, PCs and tablets.

Microsoft is not alone. Sony and Nintendo have also recently raised prices on some of their consoles. If demand for AI server memory continues to grow, further price increases across consumer electronics — including gaming hardware — appear likely.

For South Korean consumers, however, supply shortages have been a more immediate concern than price increases. The Xbox Series S 512GB model has been out of stock domestically since the second half of last year, making it in effect impossible to buy at the official retail price. Even if sales resume, the actual purchase price could end up higher than a simple currency conversion would suggest, once exchange rate fluctuations and distribution costs are factored in.


rim@heraldcorp.com