Story perspectives

Microsoft hikes Xbox prices, cuts 3,200 jobs

8/4/2026

Summary

Microsoft Raises Prices

Microsoft will raise Xbox prices on August 1 2026, with the UK 512 GB Series S moving from £299.99 to £429.99.
The EU 512 GB Series S will rise from €349.99 to €499.99 and the 1 TB Series X Disc from €599.99 to €799.99.
In the United States, Microsoft adds $100 to 512 GB models and $150 to 1 TB models.
Microsoft said the hikes respond to component costs that have risen over 2.5 times and could double by fall 2027.

Summary

Microsoft Cuts Staff

Microsoft announced a layoff of 3,200 staff, sale of five game studios, and reported a $1.7 billion Xbox revenue drop for FY2026, a 29% hardware-sales decline after price hikes.
Xbox chief Asha Sharma said business added 200 players but growth was not proportional and pledged to realign investments toward player-valued areas by 2027.
Microsoft CEO Satya Nadella said company is resetting decisions for long-term growth, citing its IP portfolio and talent.

History

Historical Context

The 2011 Japanese earthquake triggered a severe NAND-memory shortage, and the COVID-driven 2020-2023 chip crunch kept supplies tight through 2022-2024, with TSMC holding over 50% of global wafer-foundry capacity in 2020. The squeeze affected at least 169 industries, from automotive to consumer electronics. Those bottlenecks have resurfaced in Microsoft’s 2026 Xbox price hike and related job cuts.

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Microsoft Raises Prices

Microsoft will raise Xbox prices on August 1 2026, with the UK 512 GB Series S moving from £299.99 to £429.99.
The EU 512 GB Series S will rise from €349.99 to €499.99 and the 1 TB Series X Disc from €599.99 to €799.99.
In the United States, Microsoft adds $100 to 512 GB models and $150 to 1 TB models.
Microsoft said the hikes respond to component costs that have risen over 2.5 times and could double by fall 2027.

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