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Xbox price hikes, subscriber shortfall, layoffs

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2026-08-03 19:54 UTC → 2026-08-04 15:07 UTC · added ~~removed~~

Microsoft’s Xbox division continues to grapple with a deep margin squeeze and a strategic reset. After a 29 % decline in hardware sales in FY 2026, the company raised the recommended retail prices of all current Series X and Series S consoles across Europe on 1 August 2026, adding €150‑€200 per unit and discontinuing the 2 TB Series X model. The hikes are linked to a sharp rise in storage‑and‑memory component costs, which ~~have more~~ are now about 2.5 times higher than ~~doubled~~ a year earlier and are projected to double again by ~~late~~ autumn 2027. ~~Gamer backlash has been intense. On 3 August 2026 Microsoft detailed the~~ The new European suggested retail ~~prices:~~ prices are €499.99 for the 512 GB Series S, €599.99 for the 1 TB Series S, €749.99 for the 1 TB digital Series X and €799.99 for the 1 TB disc‑based Series ~~X, up €150‑€200 from previous levels. Asha Sharma said~~ X. Gamer backlash has been intense, with many noting the ~~moves reflect a broader “components crisis” in consumer electronics.~~ consoles are now significantly more expensive than at launch six years ago. At the same time, Xbox Game Pass subscriber numbers have stalled around 30 million, far short of the 77 million target for FY 2026. Former Forza Horizon 5 creative director Mike Brown called the shortfall “truly sad” and linked it to the recent 3,200‑person Xbox‑division layoff and the broader 4,800‑person Microsoft restructuring. He noted Microsoft has spent over $80 billion on studio acquisitions and project funding without the expected revenue return. Xbox CEO Asha Sharma has acknowledged the Game Pass bet has not paid off, and internal dissent over the subscription‑first strategy has been reported.

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