Microsoft has announced another major price increase for its Xbox Series X and Series S consoles, with the new prices taking effect worldwide on August 1, 2026.
The company says all 512GB Xbox consoles will increase in price by $100, while models equipped with 1TB of storage will become $150 more expensive. Microsoft is also discontinuing the 2TB Xbox Series X version.
Based on consoles’ current US prices, the 512GB Xbox Series S will rise from $399.99 to $499.99. The 1TB Series S, meanwhile, will increase from $449.99 to $599.99.
The 1TB all-digital Xbox Series X will jump from $599.99 to $749.99, while the standard Xbox Series X with a disc drive will increase from $649.99 to $799.99.
Microsoft has not provided a complete list of updated prices for every country, so the final amount charged outside the US may vary depending on local currency conversions, taxes and regional pricing. However, the company confirmed that the increase will apply worldwide.
Microsoft blames rising memory and storage costs
Microsoft says it spent several months working with suppliers to avoid another increase, but rapidly rising component prices ultimately made the existing console pricing unsustainable.
According to the company, the cost of console storage and memory has increased by more than 2.5 times, with Microsoft expecting those costs to double again by autumn 2027.
The company argues that the current component shortage is affecting the entire consumer electronics industry but is particularly difficult for game consoles, which are commonly sold at or below their manufacturing cost. Platform holders instead traditionally make money through game sales, subscriptions, accessories and services over the lifetime of the hardware.
The latest increase follows another US price adjustment introduced in October 2025, when Xbox console prices rose by between $20 and $70 depending on the model.
Microsoft introduces additional payment and trade-in options
Alongside the new prices, Microsoft announced several programmes intended to make Xbox consoles more accessible.
Eligible hardware purchases through Microsoft Stores will support Buy Now, Pay Later options, allowing customers to divide the cost into short-term interest-free instalments. Eligible purchases through Amazon may also qualify for financing with 0% APR for up to 12 months.
Availability will depend on the customer’s region, eligibility and the third-party payment provider being used.
Microsoft is also working with retail partners on new trade-in and previously owned console programmes. Customers will be able to exchange eligible hardware for cash or store credit, with those consoles later being offered to other buyers at lower prices.
Xbox Certified Refurbished consoles will remain available through Microsoft Stores, with discounts of up to $100 compared with the listed retail price.
Despite the increase, Microsoft continues to position the Series S as the cheapest Xbox console and the entry point for upcoming releases such as Grand Theft Auto VI, Gears of War: E-Day and Halo: Campaign Evolved.
However, with the 512GB model approaching $500 and the standard Series X reaching $800, the affordability advantage traditionally associated with Xbox hardware is becoming significantly harder to maintain.
FAQ
When will the new Xbox console prices take effect?
The new Xbox Series X and Series S prices will take effect worldwide on August 1, 2026.
How much will the Xbox Series X and Series S cost?
In the US, the 512GB Xbox Series S is expected to cost $499.99, the 1TB Series S $599.99, the digital Series X $749.99 and the Series X with a disc drive $799.99.
Why is Microsoft increasing Xbox console prices?
Microsoft says storage and memory costs have increased by more than 2.5 times and are expected to double again by autumn 2027, making another hardware price increase necessary.
