Xbox Series S consoles are pricier than PS5s at launch after Microsoft confirms latest cost rises

The Xbox August price-hike has officially gone into effect and even though we knew it was coming, it still stings.

Xbox Series X and S consoles in the United States, United Kingdom and Europe have all received revised prices, which have been changed to reflect current market difficulties. It’s also a telling sign of what to expect from the next-gen Xbox Project Helix.

What’s most alarming however is how Xbox Series S consoles now cost as much as the PlayStation 5 did when it first launched, and some models even cost more.

Thanks to a breakdown of the price increases by VGC, the Xbox Series S now costs $499.99/£429.99/€499.99 for the 512GB model, or $599.99/£519.99/€599.99 for the 1TB model.

For comparison, a bog-standard PlayStation 5 cost $499.99/£449.99/€499.99 at launch and came with more internal storage space.

The difference is astounding, especially when you remember the Xbox Series S was marketed and sold as the more cost-effective option for gamers on a budget. It’s nowhere near as powerful as a PlayStation 5 and yet nowadays it’s just as expensive.

As for the Xbox Series X, the higher-end console will now cost $749.99/€749.99/£619.99 for the 1TB digital-only variant, and $799.99/€799.99/£669.99 for the 1TB model with a disc drive. Xbox thankfully discontinued the 2TB model entirely due to excessive production costs, but can you imagine how much that’d be given what we know now?

Taking the above into account and Valve’s soon-to-be-shipped Steam Machine as an example, there’s no doubt that Project Helix is going to cost well-above $1,000 at launch.

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Xbox revenue is at an all-time low

These price increases haven\t just come about due to the increasing cost of components used in hardware development. What’s now been dubbed as the ‘RAMpocalyse’ is still ongoing and it’s only getting worse.

Jez Corden from Windows Central recently reported that Xbox is currently selling its consoles at a loss, by as much as $150 with each console.

It’s a shame because the company has been making some good changes as of late. It’s putting a lot of effort into optimising Xbox Game Pass, the new CEO Asha Sharma’s stance on exclusive games is positive, and Xbox Positron sounds intriguing on paper.

Unfortunately it’s hard to get excited for the future of Xbox after it laid off thousands of workers, and has now increased the cost of its hardware once again. Grand Theft Auto VI is definitely going to be a console-seller, but with the most-expensive consoles now going for as much as $800 even Rockstar’s upcoming masterpiece might struggle to tempt people.

Gamers better take good care of their Xbox and PlayStations. The last thing you’d want in this economy is your console developing a fault and having to buy a new one…

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