Microsoft has confirmed a significant global price increase for the Xbox Series lineup, with new pricing set to take effect on August 2, 2026. The company cites soaring storage and memory costs as the primary reason behind the decision, marking the second major price adjustment in less than a year.
The increases are substantial, with some Xbox models seeing price jumps of as much as $150 USD.
Xbox Console Prices Are Going Up Again
According to Microsoft, rising component costs across the consumer electronics industry have forced the company to revisit Xbox pricing.
The updated US pricing is as follows:
- Xbox Series S 512GB: from $399.99 to $499.99 (+$100)
- Xbox Series S 1TB: from $449.99 to $599.99 (+$150)
- Xbox Series X 1TB Digital: from $599.99 to $749.99 (+$150)
- Xbox Series X 1TB: from $649.99 to $799.99 (+$150)
Microsoft also confirmed that the Xbox Series X 2TB model will be discontinued, removing the premium storage option from the current lineup.
At the time of writing, the company has not yet announced updated prices for Europe and other international markets.
Storage and Memory Costs Have "More Than Doubled"
In an official statement, Microsoft explained that memory and storage component prices have risen dramatically over the past year.
"Console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027," Microsoft said.
The company added that the wider electronics industry is facing similar challenges, but gaming consoles are particularly vulnerable because they are traditionally sold with extremely thin margins.
"Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make."
The ongoing global component crisis has already impacted several hardware manufacturers, with companies across the gaming industry warning that rising production costs may continue for years.
Microsoft Pushes Alternative Buying Options
Acknowledging that higher prices could make console gaming less accessible, Microsoft highlighted several purchasing programs designed to ease the financial burden on consumers.
These include:
- Buy Now, Pay Later options through the Microsoft Store
- Interest-free financing through Amazon
- Certified Refurbished Xbox consoles offering discounts of up to $100 off MSRP
- New retail programs focused on previously owned consoles
The company says these initiatives aim to help players continue accessing the Xbox ecosystem despite rising hardware prices.
Another Sign of an Industry-Wide Hardware Crisis
Microsoft’s announcement arrives just days after Valve admitted that its recently announced Steam Machine launched at a far higher price than originally planned.
Valve’s entry-level Steam Machine currently starts at $1,049, with the company similarly pointing to skyrocketing component costs and ongoing supply issues.
With both Microsoft and Valve now publicly acknowledging the severity of the situation, it appears the gaming industry could be entering a new era of significantly more expensive hardware.
For players considering a new Xbox console, August 2 may represent the final opportunity to purchase current models at existing prices.
