Credit: Microsoft
Starting August 1, 2026, Microsoft will increase the price of Xbox Series X/S consoles worldwide. The 512GB version will increase by $100, while the 1TB version will increase by $150. Furthermore, the manufacturer will discontinue the 2TB models.
“Last October, we raised the price of Xbox consoles by $20–$70 [depending on the model]. We hoped another price increase wouldn’t be necessary and have been working with suppliers over the past several months to explore options. Unfortunately, console memory and storage prices have increased more than 2.5 times, and we expect another doubling by fall 2027. The entire consumer electronics industry is struggling with the current component crisis, but the impact is particularly severe on consoles. Unlike phones, computers, speakers, and other consumer devices, consoles are typically sold below the cost of production, not at a profit,” Microsoft wrote on its Xbox blog.
The company also introduced new programs designed to make Xbox gaming more accessible to customers. For example, the company has simplified the “Buy Now, Pay Later” program for purchasing eligible Xbox hardware through Microsoft Stores. Payments can now be split into predictable, short-term, interest-free installments. Buyers of consoles on Amazon will be able to take advantage of interest-free financing for up to 12 months, giving them greater flexibility with their monthly payments.
To mitigate the impact of the latest price hike, Microsoft is offering installment plans on new consoles. The manufacturer also offers refurbished units at lower prices. The company added that the Xbox Series S remains the most affordable way for console users to enjoy Assassin’s Creed Black Flag Resynced, Call of Duty: Modern Warfare 4, Gears of War: E-Day, Grand Theft Auto VI, Halo: Campaign Evolved, and Madden NFL 27.