Microsoft is set to implement another price increase on its Xbox consoles, marking the third such adjustment in approximately 13 months. Effective August 1, specific Xbox models will see their prices rise by at least $100.
According to an Xbox Wire post, 512 GB Xbox models will increase by $100, while 1 TB models will see a $150 price hike. The 2 TB Xbox Series X model is also being discontinued.
While new prices have not been officially listed, the following adjustments are anticipated:
- Xbox Series S 512 GB: $499.99 (currently $399.99)
- Xbox Series S 1TB: $599.99 (currently $449.99)
- Xbox Series X Digital 1 TB: $749.99 (currently $599.99)
- Xbox Series X 1 TB: $799.99 (currently $649.99)
This latest change follows price increases in May and October of the previous year. Xbox attributes these adjustments to the ongoing component crisis, specifically citing a more than 2.5x increase in console storage and memory prices. The company anticipates this trend will continue, with prices potentially doubling by the fall of 2027. Xbox notes that consoles, unlike many other consumer electronics, are often sold at a loss, making them particularly vulnerable to such market conditions.
This news comes as Xbox faces scrutiny over recent reports of significant layoffs within its gaming division. Following an announcement of an "Xbox reset" by CEO Asha Sharma and chief content officer Matt Booty, several Xbox-owned studios, including Compulsion Games, Double Fine, and Ninja Theory, are reportedly at risk of closure or divestment. Reports suggest that Ninja Theory's upcoming game, Senua, was revealed during Summer Game Fest partly to attract a potential buyer for the studio.
Microsoft is not alone in facing these economic pressures. Sony and Nintendo have also raised prices for the PlayStation 5 and Switch 2, respectively, citing similar reasons. Valve has similarly increased the cost of the Steam Deck, and its upcoming Steam Machine is expected to retail for over $1,000 due to current market dynamics in the technology sector.