Xbox Hits Gamers With Price-Hike As Major Retailer Warns Console Shortage Looms Ahead Of GTA VI Launch

Two reports hit on Thursday that could upset gamers ahead of the release of Grand Theft Auto VI. 

First, a major retailer warned that console shortages could emerge as demand for PlayStation 5 and Xbox Series X/S hardware collides with a memory chip shortage. Then The Verge reported that Xbox consoles are set for another price hike, adding another pain point for gamers months before one of the most anticipated video game releases in over a decade. 

Video game industry publication The Game Business reported Thursday that the ongoing hardware component shortage, better known as the chip shortage, could spark a supply crunch for popular gaming consoles at major retailers in the coming months.

Here's what the outlet reported:

But a senior games buyer, speaking without the permission of his employer, told us: "We've been informed that because of the on-going issues around hardware component availability, we won't be getting the units we want ahead of GTA."

He added: "Demand will likely outstrip supply during the year end period."

The outlet continued:

We've contacted PlayStation and Xbox about the claim. Sony CEO Hiroki Totoki told investors in May that "for calendar year 2026, the necessary volume has been secured"

However, Xbox Chief Strategy Officer Matthew Ball told The Game Business earlier in the month that there are already supply issues.

"I can tell you definitively demand for our console exceeds the supply," he told us. "We are putting them in as many stores as possible. We are producing them as quickly as possible. There is a severe limitation to how quickly we can do that, but it's not a question of appetite. We need to do more, but there are constraints here. And so there are, unfortunately, a number of different markets in which we do not have supply. There are other markets in which we have inadequate supply. That is a privilege as a company it is a challenge for us to figure out."

When we asked about the potential impact of Grand Theft Auto 6, he said: "It's going to invigorate a lot of players. It's going to move some additional devices."

Separately, The Verge reports that Microsoft is hiking Xbox console prices again, startingAugust 11, with 512GB models increasing by $100 and 1TB models rising by $150. The price hike now means the Xbox Series S starts at around $499.99, while the disc-less Xbox Series X starts at $749.99 and the disc-drive version at $799.99. 

"Last October, we increased XBOX console price by $20-$70 in the U.S.," Microsoft wrote in a blog post.

The post continued, “We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options. Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027. The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles. Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make."

Earlier today, Take-Two Interactive's Rockstar Games studio officially launched the long-awaited pre-orders for Grand Theft Auto VI. The action-packed game is priced at $79.99 and is scheNovember 19unch on November 19 for PlayStation 5 and Xbox Series X|S.

The last major GTA release was GTA V,September 17hed on September 17, 2013. Gamers have been waiting 13 years for a major GTA installment, which only suggests massive demand for the game, and will likely coincide with demand for gaming consoles at the worst possible time - a memory chip shortage.

Google search trends for "pre-order Grand Theft Auto" are at their highest level since the GTA V release in 2013.

We provided readers with Wall Street commentary - from Raymond James to BTIG to Goldman analysts - discussing what their desks think of TTWO ahead of the fall release. Read the note here.

New development:

• Apple Price Shock: Macs And iPads Jump $200 Or More As Memory Crisis Worsens

It probably makes sense for gamers to front-run potential supply issues that could materialize later this year, especially given that the memory-chip shortage is not expected to ease anytime soon.