New Delhi, June 26 -- REDMOND - Starting August 1, the price of an Xbox goes up again, for the third time in roughly fourteen months. Microsoft will charge $100 more for its 512-gigabyte console and $150 more for the one-terabyte model, citing memory costs that the company said have risen more than two and a half times and could double again before the fall of 2027. The same week the price increase was announced, Microsoft's stock fell to its lowest level in nearly three years.

Microsoft's revenue grew 18 percent year-over-year in the most recent quarter, Azure cloud computing hit 40 percent growth, and AI services are running at a $37 billion annual run rate, up 123 percent from a year ago. The market appears to be looking past the curr...