If you have been waiting for a sign to finally upgrade your gaming setup, this is it. The era of stable console pricing is officially over. As of Sunday, January 25, 2026, we are witnessing the first major wave of MSRP adjustments that analysts have feared for months. Xbox Series X price hike reports are flooding in, with standard models jumping by $100 at major retailers across the US. This isn't just a temporary fluctuation; it is the direct result of a crippling global gaming hardware shortage 2026 driven by the voracious appetite of the AI industry.

The $100 Reality Check: Xbox Leads the Surge

For the first time since its launch, the cost of entry for high-end Xbox gaming has spiked significantly. While Microsoft has fought to keep prices competitive, the economic reality of component costs has forced their hand. We are seeing the standard Xbox Series X listed at $599—a $100 increase over its long-standing $499 price tag—at several outlets. This console price alert is a critical warning for anyone eyeing a PlayStation.

The math is brutal but simple: the memory chips inside these consoles are now more valuable than the consoles themselves. With component costs spiraling, retailers are adjusting tags to protect their margins. If you see stock at the old price, you are looking at inventory purchased before the latest supplier contracts kicked in. Once that stock is gone, the $499 price point likely goes with it.

Why AI is Stealing Your RAM

To understand why a PS5 price increase 2026 is almost inevitable, you have to look at the silicon supply chain. The culprit is the massive boom in Artificial Intelligence. AI servers require enormous amounts of High-Bandwidth Memory (HBM) and high-density DRAM. According to recent reports from IDC and TrendForce, major manufacturers like Samsung and SK Hynix have shifted their production lines away from consumer-grade GDDR6 memory (used in consoles) to focus on enterprise-grade AI memory.

The situation worsened significantly in late 2025 when Micron announced it would pivot capacity away from consumer lines. This "capacity siphoning effect" has created a supply vacuum. Every wafer of silicon used for an AI server is one less wafer available for a PS5 or Xbox. With supply tightening and demand for AI hardware showing no signs of slowing, the cost of manufacturing a gaming console has shot up by an estimated 30-40% in just six months.

PS5 Price Increase 2026: Is Sony Next?

Sony has yet to officially announce a global MSRP hike, but the writing is on the wall. Industry analysts, including those from NYU’s Stern School of Business, predict that consumer electronics could see price jumps of 10-15% globally this quarter. If Xbox—a company backed by Microsoft's trillion-dollar war chest—cannot absorb these costs, it is highly unlikely Sony will maintain current pricing for long.

This is particularly concerning for those hunting for cheap PS5 Pro deals. The Pro model, which relies on even faster, more expensive memory, is prime candidate for a price adjustment. We expect Sony could push the standard PS5 to $549 or $599 and the Pro model even higher within weeks. If you find a PS5 at the original MSRP today, consider it a clearance sale.

Best Console Deals January 2026: Where to Buy Now

The window of opportunity is closing, but it hasn't slammed shut yet. Large retailers like Amazon, Best Buy, and Walmart still have "legacy" inventory—stock that was secured at 2025 prices. This is currently your best bet for avoiding the hike. Monitoring Amazon Xbox Series X stock is crucial right now; we are seeing flashes of inventory at the old $499 price point, but they sell out instantly as savvy buyers react to the news.

Current "Safe" Buy Zones:

  • Amazon: Check for "Sold by Amazon" listings to avoid third-party scalper markups. Look for bundles, which often retain value better than standalone units.
  • Best Buy: Their physical inventory in less populated areas may still have old stickers. Check local store availability online.
  • Direct from Manufacturer: PlayStation Direct and the Microsoft Store are occasionally restocking at standard MSRP, though these drops are becoming rarer.

The 2026 Hardware Outlook

The gaming hardware shortage 2026 is distinct from the pandemic shortages of 2020. This isn't about shipping containers being stuck at ports; it's about a permanent structural shift in the semiconductor market. As long as AI companies are willing to pay 10x premiums for memory, gamers will be second-class citizens in the supply chain.

If you are on the fence, get off it. The $100 price hike on Xbox is likely just the beginning. By mid-year, we could be looking at a landscape where $600 is the new normal for standard consoles. Secure your hardware today while the best console deals January 2026 are still lingering on store shelves.