Microsoft Raises Prices for Xbox Consoles Again

After hiking the price of Xbox consoles in October 2025, Microsoft is once again increasing the cost of Xbox consoles worldwide starting August 1.

In a recent blog post on Xbox Wire dated June 25, Microsoft announced that the 512GB models will see a $100 increase, while the 1TB models will go up by $150. This adjustment brings the Series S price to $500 and the Series X price to $800. Due to this price change, Microsoft will discontinue the 2TB Xbox consoles. The company cited a more than 2.5x increase in console storage and memory prices as the reason for the hike. Microsoft also anticipates a further doubling in costs by fall 2027, hinting at potential future price increases. The company explained that the current component crisis is affecting the entire consumer electronics industry, with consoles being hit particularly hard. Unlike other devices, consoles are typically sold at a loss rather than for profit.

To mitigate the impact of the price increase, Microsoft is introducing various programs to enhance affordability for customers. These initiatives include a Buy Now, Pay Later option, interest-free financing plans, a Certified Refurbished Consoles program offering up to $100 off, and a 'previously played consoles' option reminiscent of purchasing used consoles at GameStop. This marks the third price adjustment by Microsoft, following two increases last year in May and October 2025. The previous hikes ranged from $20 to $100, with the latter affecting only US customers. The rising prices of game consoles are raising concerns about their affordability and relevance in the market.