Microsoft will raise prices on Xbox consoles globally starting August 1, 2026. The increases will be $100 for 512GB models and $150 for 1TB models, affecting Xbox Series S and Series X variants [1, 2, 3, 4, 5, 6, 7, 8, 9].
Specifically, the Xbox Series S 512GB price will rise from $399.99 to $499.99, the Series S 1TB from $449.99 to $599.99, the Series X Digital 1TB from $599.99 to $749.99, and the Series X 1TB with disc drive from $649.99 to $799.99 [3, 5, 7, 8, 10].
The 2TB Xbox Series X model, introduced in 2024, will be discontinued worldwide from the same date [1, 2, 3, 5, 6, 7, 8, 9].
This marks the third price increase for Xbox consoles in just 13 months, following previous hikes in May 2025 and October 2025. Microsoft said it hoped another increase would not be necessary, but rising component costs forced the change. “Console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027,” the Xbox team said [1].
Unlike phones and computers, Xbox consoles generally sell at a loss—Microsoft stated consoles cost more to produce than the selling price [1, 4, 5, 6, 7, 9]. The surge in memory and storage chip prices is driven by a global component shortage and rising demand for AI infrastructure from companies such as Nvidia [1, 4, 6, 8, 9, 10].
Before the price hike takes effect, some US retailers have discounted Xbox Series X and Series S consoles significantly in June 2026 [11, 10]. Microsoft said it will expand financing options including Buy Now, Pay Later and interest-free installment plans through Amazon, and certified refurbished consoles will be available to ease affordability [2, 3, 4, 5, 7, 8].
Sony and Nintendo have also raised console prices recently. Sony increased PlayStation 5 prices by about €100 in Europe earlier this year. Nintendo will raise Switch 2 prices by more than 6% starting September 1, 2026 [1, 2, 4, 12, 8, 9, 10].
Sales for Xbox and PlayStation have declined in May 2026, with Xbox hitting its lowest May ever in the US and PlayStation 5 sales dropping 58% year-on-year, partially due to price rises [12]. Valve recently launched a new Steam Machine for over $1,000, citing elevated component costs [1, 2, 4, 12, 10].
Looking ahead, the expected release of Grand Theft Auto VI in November 2026 may increase demand for consoles, though supply constraints persist. A retailer warned demand will likely outstrip supply during the year-end period leading into the GTA launch [7, 10].
The new Xbox prices and discontinuation of the 2TB Series X will take effect worldwide on August 1, 2026 [1, 2, 3, 4, 5, 6, 7, 8, 9, 10].
