Microsoft has announced significant price increases for its Xbox console lineup, joining Nintendo and Sony in raising hardware prices amid mounting component costs and ongoing supply chain pressures.
The new pricing will take effect on August 1, 2026, with some Xbox models seeing increases of up to $150, according to the company.
Under the revised pricing structure, the 512GB Xbox Series S will cost $500, up by $100 from its previous price. The 1TB Xbox Series S will rise by $150 to $600. Meanwhile, the Xbox Series X will also become more expensive, with the disc-drive version increasing to $800 and the all-digital version climbing to $750.
Microsoft also confirmed it will discontinue the 2TB Xbox model once existing inventory is sold out, leaving the 1TB version as the highest-capacity option in the lineup.
The company attributed the price increases to soaring storage and memory costs. In a statement issued on June 25, Microsoft said storage and memory component prices have risen more than 2.5 times and are expected to increase further through 2027.
“Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027,” Microsoft said.
The company noted that the broader consumer electronics industry is facing challenges due to rising component costs, but argued that gaming consoles are particularly vulnerable because they are often sold at little or no profit.
The move follows similar price adjustments by competitors. Nintendo recently increased prices for its Switch and Switch 2 consoles, while Sony also raised prices for several PlayStation 5 models in various markets.
Industry analysts have linked the surge in component costs to growing demand for advanced memory and storage products, driven in part by the rapid expansion of artificial intelligence infrastructure and data centres worldwide.
For consumers, the latest increase means there is only a short window remaining to purchase Xbox consoles at current prices before the higher rates take effect next month.
The Xbox price hike marks another sign of inflationary pressures affecting the global technology sector, where manufacturers continue to grapple with rising production costs and increasing demand for critical hardware components.
