Microsoft raised Xbox Series S and Series X console prices significantly in the UK and Europe on August 1, 2026 [1, 2, 3]. In the UK, the 1TB Xbox Series X disc model jumped from £500 to £670, a £170 or roughly 34% increase [1, 2, 4]. The 512GB Xbox Series S price rose from £300 to £430, a 43% rise [1, 2, 4]. Across Europe, the Xbox Series X 1TB disc console climbed from €599.99 to €799.99, a €200 increase [1, 3, 5]. In the U.S., Xbox prices also increased by $100 to $150 depending on the model, with the Series X 1TB disc price going from $650 to about $800 [1, 4, 5].
Microsoft attributed the hikes mainly to a global shortage and rising prices of memory and storage components, which have worsened due to growing demand from the artificial intelligence industry [1, 3, 5]. The company also revealed it phased out the 2TB Xbox Series X model and now focuses solely on 1TB versions due to storage supply issues [2, 5].
The price increases come after Xbox gaming division revenues fell 10% in the most recent financial quarter, alongside layoffs of 3,200 employees, with 1,600 cuts occurring immediately [1, 4]. Some members of the Xbox community reacted negatively, calling the hikes the “final nail in the coffin” and sarcastically dubbing them “a great strategy” to boost sales [1].
This August 1 price increase marks the third major Xbox console price hike since May 2025 [2, 5]. Microsoft had previously announced U.S. price increases in June and warned of global adjustments ahead [2, 3]. The Xbox division also announced the layoffs in July 2026 [1, 4].
The focus on 1TB models and the recent supply chain pressures are expected to continue shaping Xbox’s pricing strategy in the near future [5].
