Just hours after Apple announced price hikes for its MacBook and iPad, Microsoft disclosed on Thursday that consumers will face higher prices for Xbox gaming consoles in the future, citing persistent increases in the cost of key components.

Following this news, Microsoft shares fell nearly 4% during the trading session, while Apple shares declined by 5%.

Microsoft stated that starting August 1st, the price of the 512GB Xbox Series S will increase by $100 to approximately $500, while the 1TB version will see a $150 price rise. Concurrently, the starting price for the entry-level Xbox Series X will be raised to around $750.

In an official blog post, Microsoft explained, "Last October, we increased Xbox console prices in the U.S. market by $20 to $70. We had hoped to avoid another price adjustment and have been actively negotiating various solutions with our suppliers over the past several months."

The company attributed the primary driver of this latest price increase to significant surges in storage and memory costs. "The prices for the storage and memory used in our gaming consoles have risen more than 2.5 times, and we anticipate these costs will double again by the fall of 2027," Microsoft noted.