Microsoft has announced another price increase for its Xbox consoles, with updated pricing set to take effect worldwide on August 1, 2026. This marks the third such adjustment for Xbox systems since 2025. Alongside the price hike, the company will also discontinue the 2TB model of its consoles.
Effective August 1, 2026, prices for Xbox consoles will increase by $100 for 512GB models and $150 for 1TB models. The new retail prices will be $800 for the 1TB Xbox Series X with a disc drive (previously $650), $750 for the 1TB all-digital Xbox Series X (previously $600), $500 for the 512GB Xbox Series S (previously $400), and $600 for the 1TB Xbox Series S (previously $450).
Microsoft attributes these price adjustments to rising costs for console storage and memory components. According to the company, these costs have increased approximately 2.5 times since the last price adjustment in October, with further increases expected in the fall of 2027. The broader consumer electronics industry is currently facing a significant components crisis, which disproportionately affects consoles. Unlike many other consumer devices such as phones or computers, consoles are often sold at a loss, meaning their manufacturing cost exceeds their retail price.
In response to the increased prices, Microsoft is launching a new "Buy Now, Pay Later" service through its own stores. This service will enable customers to purchase Xbox systems and pay for them in interest-free installments. Additionally, Amazon will offer up to 12-month financing options. Microsoft also stated that it is collaborating with retailers to make pre-owned and certified refurbished Xbox systems available on the Microsoft Store.
This latest price increase follows two previous adjustments. The first occurred in May of last year, with speculation at the time pointing to newly imposed tariffs as a contributing factor. The second price adjustment came in September of the same year, which Microsoft explained was due to “changes in the macroeconomic environment.” The 2TB model, which reached a price of $800 following the September adjustment, will now be discontinued. This is a developing story.