How bad is the hardware crisis? Well, Microsoft is emailing some Xbox owners the latest trade-in offers at Best Buy

Microsoft is encouraging Xbox owners it feels aren't using their console enough to trade-in their hardware at U.S. tech retailer Best Buy.

An email initially shared on X told one such user to turn their "unused console" into a gift card with a simple trade-in. The post was eventually shared on ResetEra, where another person claimed to have received the same email. 

"Haven't played on your console in a while? If you've move on to Xbox on PC or another way to play Xbox games, it may be time to trade in your console to Best Buy for up to $375 back," reads the email.

Xbox Series S users will be able to claim up to $200 through the same trade-in program. 

An Xbox representative confirmed the legitimacy of the email to Vertical Slice.

Hardware trade-in promotions aren't a new thing, but it's interesting to see Microsoft directly reaching out to customers who it feels perhaps won't miss their console.

In a June blog post discussing its latest price hikes, Xbox said it would be "working with retail partners on new programs to provide previously played consoles at lower prices." The company added that "players who are ready to upgrade or no longer use their console will be able to trade it in with participating retail partners for cash or store credit," before pledging to make those consoles available at lower prices for new customers.

The backdrop here is a massive AI-driven hardware crisis that is rapidly inflating the price of video game consoles and other consumer electronics. 

In the case of Xbox, specifically, Microsoft has increased the price of console hardware twice in the past year. At the time of writing, the standard Xbox Series S (512GB) and Xbox Series X (1TB) cost $499.99 and $749.99 respectively in the United States (thanks IGN).

Microsoft blamed its latest price hike on the aforementioned component crisis.

"Last October, we increased Xbox console price by $20-$70 in the U.S. We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options," said the company in June.

"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."

Who is investing in the data centers responsible for punting prices into the stratosphere? Microsoft might be able to offer at least one name.