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Sign InAs inflation continues to pressure component costs, Microsoft has announced price increases for its Xbox Series S consoles. The base 512GB model will rise by $100 to approximately $500, and the 1TB model will increase by $150, effective August 1, according to a CNBC report.
The move follows similar price hikes by Apple on MacBooks and iPads, signaling a broader trend of price increases across consumer electronics due to higher chip and parts costs. Shares of MSFT closed at $354.51 on June 25, while AAPL ended at $276.68 on the same day, showing limited immediate reaction to the announcements.
The price increases could help protect Microsoft’s margins in the near term, but they may weigh on demand in a price-sensitive segment. Investors will watch upcoming US inflation data and consumer spending reports, especially ahead of the holiday season. Earnings reports from gaming peers will also be key to assessing whether the market can absorb such hikes.