This is the 2nd time they raised the price of Xbox consoles this year. You can guess why.
Xbox Series S 512 increased to $399.99 from $379.99
Xbox Series S 1TB increased to $449.99 from $429.99
Xbox Series X Digital increased to $599.99 from $549.99
Xbox Series X increased to $649.99 from $599.99
Xbox Series X 2TB Galaxy Black Special Edition increased to $799.99 from $729.99
This is unlikely to happen with current rules. You would likely need to radically change copyright and patent laws for a fast-moving sector like semiconductors to create real competition.
Semiconductor performance will continue to improve and the baseline will always be the most modern CPUs and GPUs (even if prices continue to rise).