Today, Microsoft announced a global price increase for Xbox Series X|S consoles, which is set to take effect on August 1, 2026.
The price increase affects both the 512GB and 1TB models, which will rise by $100 and $150, respectively; Microsoft will also discontinue the 2TB console. You can take a full look at the updated pricing below:
- Series S 512GB: from $399 to $499
- Series S 1TB: from $449 to $599
- Series X 1TB Digital: from $599 to $749
- Series X 1TB: from $649 to $799
This marks the second price increase in less than a year, following a $20 to $70 hike in October 2025. Microsoft cites rising costs for storage and memory components, which it says have increased more than 2.5 times in recent years and may double again by late 2027.
Microsoft says the component shortage is affecting the entire consumer electronics industry, but notes that gaming consoles face additional challenges. Unlike smartphones and PCs, consoles are usually sold at minimal profit, making manufacturers more vulnerable to rising production costs.
To attempt to make up for the increases, Microsoft is introducing new affordability options. If you buy from Microsoft Stores, you can choose from Buy Now, Pay Later plans with interest-free installments.
Sites like Amazon are offering 0% APR financing for up to 12 months on qualifying Xbox products, and Microsoft is also expanding programs for previously played and refurbished consoles. Through certain retail partners, players can trade in older hardware for cash or store credit, while refurbished systems are resold at lower prices.
Earlier this year, Microsoft announced its financial results for Q3 of fiscal year 2026, reporting that gaming revenue had dropped 7% year-on-year, content and services were down 5%, and Xbox hardware was down 33%. Despite this, the company as a whole broke records with $82.9 billion in revenue (up 18% year-on-year) and $38.4% billion in operating income (up 20% year-on-year).
This is just the latest in a line of controversial moves by Microsoft over the past few years, as the company has received significant negative media attention for its Xbox Game Pass price hikes, generative AI development, and multiple layoffs. While there was at least some good news recently, as they dropped the price of Xbox Game Pass Ultimate and PC Game Pass, it looks like the company still has a long way to go before earning back its consumers’ trust.
