Microsoft may increase Xbox Series X|S prices again soon amid memory shortage

Xbox Series X with controller
Xbox Series X. Source: Unsplash/billyfreeman
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Key points

  1. Insider Moore’s Law Is Dead says Microsoft has warned partners about a RAM shortage that could lift Xbox Series X|S prices again.
  2. The memory shortage is tied to the AI boom, with OpenAI and other firms locking up DRAM capacity and driving up memory prices.
  3. Sony is reportedly insulated for now due to earlier GDDR6 stockpiles for PS5, but that depends on the upcycle duration.

According to recent hardware industry reports and statistics, Xbox Series X|S may soon face another price hike. A well-known insider, Moore’s Law Is Dead, claims that Microsoft has warned partners of a severe RAM shortage that will impact Xbox console pricing in the very near future.

The memory shortage and subsequent price hikes stem from the AI boom, as companies like OpenAI absorb a colossal share of the global DRAM supply.

In his recent video, Moore’s Law Is Dead claimed that Microsoft’s console business will feel the pressure from the ongoing memory crisis much sooner than expected. The company allegedly warned partners that the RAM shortage would impact the Xbox Series X|S “very soon”.

Reportedly, Microsoft hadn’t planned anything and didn’t stockpile hardware components, so prices across the current line of Xbox consoles will rise, and Xbox X|S availability may be disrupted for a time. This will happen sooner rather than later.

According to the insider, Sony is in a better position. The company purchased vast amounts of GDDR6 memory when prices were low. This supply will last for the coming months, allowing Sony to feel confident and even lower the prices of all PlayStation 5 models for Black Friday. They’re not worried about RAM shortages, at least in the short- and middle-term.

Xbox has already raised prices twice in 2025

The Xbox Series console lineup has seen two price hikes in 2025 (in May and September), likely due to US government tariffs on various products. The previous price hikes for Xbox Series X|S and Game Pass have already sparked criticism in the gaming industry, protests from gamers, and left analysts confused. Additionally, Xbox raised the price of the dev kit console.

Meanwhile, Xbox president Sarah Bond revealed in recent interviews that the team is already working on the next-generation console. She described the future device as a powerful experience and a premium product, hinting at the possibly even higher price and architectural flexibility inherent in Windows.

Why is hardware getting more expensive?

While rumors should be treated with caution, this information aligns with the current hardware industry landscape. In the second half of 2025, DRAM chip prices soared across the board, prompting retail memory prices to surge, leaving consumers unable to purchase the RAM they needed.

Daily median DDR5 RAM retail prices
Daily median DDR5 RAM retail prices in the US from January to November 5, 2025.

The price increase and subsequent shortage were driven by increased demand for DRAM from OpenAI and other AI companies. Memory manufacturers have redirected much of their capacity to providing servers and AI infrastructure. Samsung, Micron, and SK hynix have raised DRAM contract prices several times in 2025 by 15-30% each time.

This situation is called the DRAM supercycle, and it’s when the memory supply lags demand for extended periods, leading to prices that keep climbing. Analysts expect the current upcycle to last at least through 2027.

The main reason cited is OpenAI‘s large-scale, long-term deals with Samsung and SK Hynix. These contracts reserve up to 900,000 DRAM wafers per month. Once fully operational, this will account for approximately 40% of global DRAM production.

Memory-linked hardware price hikes

Consumer DDR5 RAM prices are rising fast and are already resetting retail baselines for PC gaming. In US stores, the median 2×32 GB kit is now over $200, and the median 2×16 GB kit is above $120. Over roughly a month, median prices are up about 40% market-wide, and 2×32 GB kits jumped around 70% in 6 weeks.

montly change in US median DDR5 RAM retail prices
MoM change in US median DDR5 RAM retail prices by kit capacity in 2025, Jan-Oct and Nov MTD (Nov 5th).

AMD has warned board partners about imminent GPU shipment price increases across the stack, including gaming Radeon cards, because VRAM and other memory components are becoming sharply more expensive in the AI-driven DRAM supercycle.

Korean industry reports add that both AMD and Nvidia may go further on budget and mid-range GPUs, potentially cutting some SKUs or lowering VRAM configs to keep costs in check. Nothing is confirmed yet, but the theme matches the Xbox story: memory inflation is pushing up hardware prices and squeezing the affordable end first.

Even smartphones have felt the same memory pressure, with new Xiaomi models launching at higher prices. After public pushback, some models were temporarily discounted.

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