Microsoft's AI Ambitions Drive Up Cost of Xbox Consoles

Xbox consoles have been experiencing rising prices, and Microsoft itself is partially to blame. The company's push into AI has driven up costs for GPUs, which are essential for gaming performance.

Asha Sharma, Xbox CEO, acknowledged the irony in an interview with the BBC, stating that she thinks it's great that GPUs are being used for technology outside of gaming, even if it means consoles are more expensive than ever.

The cheapest new Xbox, the Series S, now sells for $500, a $200 increase from its launch price in 2020. Sharma noted that for the next generation of consoles, including Microsoft's Helix platform, the company will need to prioritize 'efficiency and affordability, alongside performance.'