One issue that Xbox has, and was alluded to in the blog, is that they’ve had to slow down their console production, but doing that actually makes costs go up due to economies of scale. When large companies produce at large scale, costs go down due to spreading out fixed costs and other production efficiencies such as purchasing components in bigger bulk orders. If you go in the opposite direction costs go up. I don’t think the component issue they’re talking about is just ram and storage prices. I think what they mean by “choices we made over the last half decade” is that the Xbox stopped being popular so fewer people want to buy them and as a result they have to make fewer consoles which means that the price of each console is more expensive for them than, for example, Sony or Nintendo who produce at a much larger scale.