Microsoft Announces Up to $150 Price Increases for Xbox Consoles Starting on August 1

Microsoft is about to raise the price of its Xbox consoles for the second time in 12 months. After bumping prices by $20-$70 in the US in October 2025, a much more significant price hike will happen worldwide on August 1, 2026, with the 512GB Xbox Series S models costing an extra $100 in the US, and 1TB Series S and Series X models costing an extra $150.

Here’s the new pricing structure that will come into effect in the US on August 1, 2026:

• Xbox Series S 512GB: $449 (currently $349)
• Xbox Series S 1TB: $549 (currently $399)
• Xbox Series X 1TB Digital: $699 (currently $549)
• Xbox Series X 1TB: $749 (currently $599)

Microsoft is also discontinuing the 2TB Xbox Series X “Galaxy Black”, which is currently priced at $799.99. If you want the extra storage, now is probably the time to score this model while supplies last.

“We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options. Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027. The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles”, the Xbox team said today.

To make Xbox consoles more accessible to consumers, Microsoft announced the introduction of a “Buy Now, Pay Later” option on the Microsoft Store for breaking up payments into “predictable short-term, interest-free installments.” The company also teamed up with Amazon to offer interest-free financing to consumers purchasing eligible Xbox hardware.

Microsoft also continues to offer certified refurbished consoles for up to $100 off on the Microsoft Store, and the team said today that it’s working with retail partners to offer previously played consoles at a lower price. “Players who are ready to upgrade or no longer use their console will be able to trade it in with participating retail partners for cash or store credit,” the team said.

These latest price increases come right after Xbox CEO Asha Sharma announced a “return to Xbox” and the exclusivity of Gears of War: E-Day and Clockwork Evolution. While these two games will also come to PC, it’s not clear how Microsoft can expect these games to sell well if Xbox consoles become more expensive.

Earlier this week, Valve revealed that its Steam Machine will start at a whopping $1,049 in the US, and that’s the price of the 512GB model without a controller. Apple followed up earlier today with price increases for iPads, Macs, and other products like HomePods and the Apple TV 4K.

Unfortunately, Microsoft and its rivals spending billions of dollars to build AI hyperscalers mean that all electronics that require significant amounts of storage and memory are about to become more expensive. And we may not have seen the worst of it yet.