Microsoft is raising the price of Xbox consoles by $100-$150
The cheapest Xbox Series X console will retail for $750 from August 1
Microsoft is raising the price of Xbox Series S and X by $100 for 512 GB models and $150 for 1 TB models, it’s announced, while 2 TB model consoles will be discontinued.
Starting August 1, 2026, the cheapest Series X 1TB model without a disc drive will retail for $749.99, while the disc-drive model will retail for $799.99.
The cheapest 512GB Xbox Series S model will now cost $499.99, with the 1TB model going for $599.99.
Microsoft raised the prices of its Xbox consoles twice last year. The latest rise means that an Xbox Series X disc-drive model now costs $300 more than it did at launch in 2020, while the Series S is 50% more expensive.
In a statement, Xbox blamed the price increases on “the current components crisis” impacting the consumer electronics industry, which has seen all three major console manufacturers raise prices significantly.
“We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options,” the company said. “Unfortunately, console storage and memory prices have increased by more than 2.5x, and we expect another doubling by the fall of 2027.
New US Xbox Console Prices
- Series X 1TB (disc drive) – $799.99 (+$150)
- Series X 1TB (digital) – $749.99 (+$150)
- Series X 2TB Galaxy Black – Discontinued
- Series S 512GB – $499.99 (+$100)
- Series S 1TB – $599.99 (+$150
“The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles. Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make.”
Alongside the price rise news, Microsoft announced new programs to help make its consoles more affordable, including Buy Now, Pay Later options through Microsoft Stores, and interest-free financing for up to 12 months via Amazon.
The company also said it’s working with retail partners on new programs to provide previously played consoles at lower prices. “Players who are ready to upgrade or no longer use their console will be able to trade it in with participating retail partners for cash or store credit,” it said. “Those consoles will then be made available at lower prices for players.”
News of the programs follows comments from CEO Asha Sharma earlier this month, indicating that Xbox was exploring ‘radically different business models’ to make its next console affordable. Earlier this week, Valve confirmed its Steam Machine would retail for over $1,000 – a price point some analysts later speculated would be “the floor” for next-gen consoles expected to arrive from 2027.
The global economic situation has piled pressure on game console manufacturers, which have historically reduced prices over time. At this stage of PlayStation 4’s lifecycle, the console retailed for as little as $200, but the cheapest PlayStation 5 model costs 50% more ($200 / £200) than it did at launch in 2020.
Both Sony and Microsoft raised the prices of their game consoles last year. Then, in March, Sony announced a massive $100 price increase for PlayStation 5 consoles, citing the “global economic landscape”. Last month, Nintendo followed with a price increase for Nintendo Switch 2 in the United States, Europe, Canada, and Japan.
It’s a challenging market for home consoles in general, with prices higher than ever and consumers squeezed by a higher cost of living. According to Circana data, hardware and software sales in the US had the worst November since tracking began in 2025. The average price of new video game hardware in the US in November 2019 was $235, compared with $439 in November 2025.
