Microsoft is raising the prices of its Xbox Series consoles for the third time in 15 months, with all models seeing a minimum $100 increase starting August 1.
The company attributes the price increase to rising memory costs, which it says have increased two and a half times compared to last year.
These changes come after recent reports of significant layoffs at Xbox and Microsoft-owned game studios. The 2TB Xbox Series
New price and Microsoft’s explanation
The new pricing for Xbox consoles will be effective from August 1, 2026:
- The price of the Xbox Series S with 512GB will increase from $399 to $499. The 1TB version of the Series S will cost $599, down from $449. digital-only
- The price of the Xbox Series X with 1TB will increase from $599 to $749. The disk drive version of the Series
- The 2TB version of the Series Notably, the 512GB Series S now has the same launch price as 2020’s original Xbox Series
Microsoft announced that it is now paying two and a half times more for memory than last year. The company expects its costs to double again by the end of 2027.
This increase in pricing reflects what other consumer electronics companies like Apple and Valve have also noted when raising their prices.
Steps Microsoft is taking to soften the impact
Microsoft is expanding its financing options for Xbox purchases. They’re working with Amazon to offer 0% APR financing on the console for up to 12 months.
Additionally, they are expanding the terms under which buyers can purchase Xbox through short-term, interest-free installments. The company is also increasing the availability of refurbished Xbox units, which are currently discounted by up to $100.
The emphasis on refurbished units shows that Microsoft is presenting pre-owned and refurbished Xboxes as a viable option for buyers who either can’t or prefer not to pay higher prices for new units.
The recent price hike follows the first two Xbox increases in 2025, which added between $20 and $130 to the cost of the console. Microsoft said the increase was due to tariffs and inflation.
Xbox hardware sales have declined significantly in recent quarters. With major layoffs announced at Xbox and Microsoft-owned game studios, these price increases are likely to put further pressure on an already shrinking hardware business.
Xbox CEO Asha Sharma recently mentioned that the company is exploring a “radically different” business model for future Xbox hardware, citing the increasing difficulty in getting mass audiences to purchase consoles that cost thousands of dollars.
Widespread Console Market Pressure and What Buyers Should Do
The console market is experiencing similar pressure on component costs across the board.
- Sony has increased the price of the PS5, with the 2TB PS5 Pro now priced at $899.
- The Nintendo Switch 2 saw a slight price increase earlier this year.
- Valve, citing higher memory costs as a factor, introduced its Steam Machine for $1,049, about $300 more than its target launch price.
- Apple recently increased the prices of its iPad, Mac, HomePod and Apple TV products.
The overall trend indicates that memory cost pressures are likely to continue increasing console and consumer device prices through 2027 and possibly beyond.
Users planning to purchase the new Xbox console will need to make their purchase before August 1 to lock in the current prices. The new higher prices will come into effect after this date. Here are some specific points to consider:
- Purchasing before August 1st can save you between $100 and $150 depending on the model.
- The 2TB Xbox Series
- Refurbished Xbox consoles are available at up to $100 off and may offer better value over current prices.
- Starting August 1, Amazon’s 0% APR financing option allows buyers to spread the higher cost over 12 months with no interest.
For those who are in no rush, waiting for the next-generation Xbox, codenamed Helix, which is expected to arrive in 2027, may be the most practical option.
Although the Helix may be pricier at launch due to similar memory pressure, it is likely to feature hardware that better justifies its price.
The new price for Xbox consoles will be effective from August 1, 2026.
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