Microsoft has implemented global price increases for its Xbox Series X and Series S consoles, effective August 1. These adjustments mean a significant rise in cost for consumers in the US, Europe, and the UK.
In the United States, the price of all 512GB Xbox models has risen by $100, while 1TB systems are now $150 more expensive. The 2TB models have been discontinued. The new pricing in the US includes the Xbox Series S 512GB at $500, the Xbox Series S 1TB at $600, the Xbox Series X 1TB digital edition at $750, and the Xbox Series X 1TB with a disc drive at $800.
European pricing has also seen substantial increases. The 512GB Xbox Series S, formerly priced at €350, now costs €500, marking a €200 increase from its original launch price in 2020. The 1TB Xbox Series S has risen from €400 to €600. For the Xbox Series X, the 1TB digital model is now €750, up from €550, and the 1TB disc version has reached €800, an increase from €600, equating to approximately $920 USD.
The United Kingdom is similarly affected, with the 512GB Xbox Series S now retailing for £430, an increase from £300. The top-tier 1TB Xbox Series X with a disc drive is now £670, up from £500.
Microsoft cited rising component costs as the primary reason for these hikes, noting that "console storage and memory prices have increased by more than 2.5x, and we expect another doubling by the fall of 2027." The company previously raised prices in October 2025 and expressed hope that further increases would not be necessary, though market conditions suggest otherwise. Reports indicated that Microsoft was losing $150 per console sold prior to these adjustments.
While Microsoft, Sony, and Nintendo are set to receive tariff refunds, none have announced plans to pass these savings onto consumers. The ongoing shortages of memory and components, exacerbated by AI-driven demand, are expected to persist, potentially leading to another Xbox price adjustment by 2027.
In response to the increased console prices, Microsoft has introduced new Buy Now, Pay Later and 0% APR financing options. The company also continues to offer certified refurbished Xbox consoles at lower price points. This follows similar price adjustments by competitors, including a PlayStation 5 price hike in April and an anticipated increase for the Nintendo Switch 2 in September.