microsoft is increasing the prices of its xbox Series consoles for the third time in 15 monthsand all models will see a minimum increase of $100 starting August 1.
The company attributes the price increase to rising memory costs, which it says have risen to two and a half times what they were at the end of last year.
These changes come after recent reports of major layoffs at Xbox and Microsoft-owned game studios. The 2TB Xbox Series X variant will be discontinued entirely.
New prices and explanation from Microsoft
The new price for Xbox consoles will take effect on August 1, 2026:
- The Xbox Series S with 512GB will cost $499, down from $399. The 1TB version of the Series S will be priced at $599, up from $449 previously. The digital only
- The Xbox Series X with 1TB will be priced at $749, down from $599. The drive version of the Series X with 1TB will now cost $799, down from $649.
- The 2TB version of the Series X has been discontinued. Notably, the 512GB Series S now has the same introductory price as the original 2020 Xbox Series X.
Microsoft announced that it is now paying two and a half times more for memory than it did at the end of last year. The company expects its costs to double again by the end of 2027.
This price increase reflects what other consumer electronics companies like Apple and Valve have also mentioned when raising their prices.
Measures Microsoft is taking to soften the impact
Microsoft is expanding its financing options for Xbox purchases. They are working with Amazon to offer 0% APR financing on consoles for up to 12 months.
In addition, they are expanding the conditions under which buyers can purchase Xbox through short-term, interest-free installments. The company is also increasing the availability of refurbished Xbox units, which are currently discounted up to $100.
The emphasis on refurbished units suggests that Microsoft is positioning refurbished and used Xboxes as a practical alternative for buyers who can’t or prefer not to pay the higher prices for new units.
The recent price increases come after two previous Xbox increases in 2025, which added between $20 and $130 to the cost of the consoles. Microsoft explained that these increases were due to tariffs and inflation.
Xbox hardware sales have declined significantly in recent quarters. Coupled with the announcement of major layoffs at Xbox and Microsoft-owned game studios, these price increases are likely to put more pressure on an already shrinking hardware business.
Xbox CEO Asha Sharma recently mentioned that the company is exploring “radically different” business models for future Xbox hardware, citing the increasing difficulty for mass audiences to afford consoles that cost thousands of dollars.
Broader console market pressure and what buyers should do
The console market is experiencing similar component cost pressures across the board.
- Sony has increased the price of the PS5, with the 2TB PS5 Pro now costing $899.
- The Nintendo Switch 2 saw a small price increase earlier this year.
- Valve introduced its Steam Machine at $1,049, about $300 above its target launch price, citing higher memory costs as a factor.
- Apple has recently increased the prices of its iPad, Mac, HomePod and Apple TV products.
The overall trend indicates that memory cost pressures are likely to continue driving up prices for consoles and consumer devices through 2027 and possibly beyond.
Users planning to purchase a new Xbox console must purchase by August 1 to lock in current pricing. After this date, the new higher prices will take effect. Here are some specific points to consider:
- Buying before August 1 can save you between $100 and $150, depending on the model.
- The 2TB Xbox Series X will no longer be available after it is discontinued, so anyone interested in that configuration should consider purchasing it now.
- Refurbished Xbox consoles are available with discounts of up to $100 and could offer better value at current prices.
- Starting August 1, Amazon’s 0% APR financing option allows buyers to spread the higher cost over 12 months interest-free.
For those in no rush, waiting for the next-gen Xbox, codenamed Helix, expected in 2027, might be the most practical option.
Although Helix may be expensive at launch due to similar memory pressures, it will likely include hardware that better justifies its price.
The new price for Xbox consoles will take effect on August 1, 2026.
