Microsoft has announced that XBOX console prices will increase worldwide starting August 1, 2026. The company cited a global memory and storage cost crisis as the primary driver.
XBOX’s announcement stated that console storage and memory prices have increased by more than 2.5x and another doubling is expected by the fall of 2027. Alongside the price hike, Microsoft confirmed it will be discontinuing the 2TB model entirely.
New XBOX Series X and Series S prices
The price increases vary by storage tier, with both Series S and Series X consoles increasing by the same amount.
| XBOX Model | Old Price | New Price | Change |
|---|---|---|---|
| Xbox Series S 512GB | $399.99 | $499.99 | +$100 |
| Xbox Series S 1TB | $449.99 | $599.99 | +$150 |
| Xbox Series X 1TB Digital | $599.99 | $749.99 | +$150 |
| Xbox Series X 1TB | $649.99 | $799.99 | +$150 |
| Xbox Series X 2TB | $799.99 | Discontinued | — |
This is not the first time Microsoft has raised Xbox prices in recent months. Last October, the company increased U.S. prices by $20–$70, hoping it would be a one-time adjustment. That hasn’t proven to be the case.
XBOX Series X 2TB model discontinued entirely
The discontinuation of the 2TB model is a significant secondary development alongside the price hikes. Microsoft has not announced a replacement, meaning the 1TB model becomes the highest-storage option in the lineup going forward.
This is a similar line to the one other consumer hardware giants like Apple have taken with their flagship devices in recent months, discontinuing the top-tier memory options. Doing this allows those same memory packages to be used to build multiple lower-tier options that customers are more likely to buy.
Why are console prices being hiked across the board?
Microsoft was unusually candid about the economics behind the decision, continuing the new direction for the division under CEO Asha Sharma. Unlike phones, computers, or speakers (which are usually sold at a profit) consoles are usually sold at or below the cost of manufacturing. That makes XBOX particularly exposed when component costs spike sharply.
The company says it spent several months working with suppliers to explore alternatives before concluding another price increase was unavoidable. With memory and storage costs expected to keep rising into 2027, further increases still cannot be ruled out.
How Microsoft Is Trying to Soften the Blow
Alongside the price increase, Microsoft is also announcing a number of programs aimed at making XBOX hardware more accessible to gamers:
- Buy Now, Pay Later: Available on eligible Xbox hardware through Microsoft Stores, with short-term interest-free installments
- 0% APR Financing: Up to 12 months interest-free on eligible purchases through Amazon
- Previously player consoles: Microsoft is working with retail partners on trade-in programs, with used consoles made available at lower prices
- Certified Refurbished Consoles: Available through Microsoft Stores at up to $100 off MSRP
Related—XBOX Games Showcase 2026 – every announcement trailer
While the price hikes are another hit to gamers’ wallets, the hardware itself is unchanged. Thus, the XBOX Series S remains the most affordable entry point for gamers at $499.99. Microsoft is leaning on a strong upcoming software lineup, including Grand Theft Auto VI, Halo: Campaign Evolved, and Gears of War: E-Day, as reasons to stay invested in the platform despite the higher prices.
If you were planning to buy, August 1 is your deadline to pay current prices, and the window to grab the 2TB model before it disappears is even shorter. Microsoft says it will continue monitoring the situation, but with component costs expected to keep rising into 2027, further price stability looks uncertain.
