Xbox Series X & Series S Get More Expensive! Microsoft Confirms Global Price Hike from August 1

Microsoft will raise Xbox console prices worldwide from August 1, 2026, as higher storage and memory costs continue to pressure gaming hardware margins. The company is also retiring the 2 TB Xbox model, narrowing its console range at a time when buyers are already facing higher electronics prices.

The new pricing structure adds US$100 to 512 GB Xbox models and US$150 to 1 TB models. Microsoft said the change follows months of work with suppliers to limit further increases, but component inflation has made the existing pricing difficult to sustain. The move comes after a separate U.S. price increase in October 2025.

Why Xbox Console Prices are Rising

The sharpest pressure is coming from storage and memory, two core parts of modern consoles. Microsoft said prices for these components have risen by more than 2.5 times, with another doubling projected by autumn 2027. That matters because current-generation games increasingly require faster storage and larger install sizes.

Gaming hardware is also more exposed to such shocks than many consumer devices. Console makers often sell hardware at low margins, or even at a loss, expecting to recover value through games, subscriptions and services. When parts become expensive quickly, there is less room to absorb the increase without changing retail prices.

The retirement of the 2 TB model also reflects that pressure. Higher-capacity consoles are more expensive to build when storage prices surge, and demand can become harder to sustain once the final retail price crosses a certain point. Microsoft has not said whether a new high-capacity option will replace it later.

Microsoft Adds Financing and Refurbished Options

To soften the impact on buyers, Microsoft is expanding payment and resale options. Eligible Xbox hardware bought through Microsoft Store can be split into short-term, interest-free instalments. The company is also working with select retailers to offer 0% APR financing for up to 12 months on qualifying hardware.

A new trade-in programme will allow users to exchange used consoles for cash or store credit. Retail partners will refurbish those devices and resell them as “previously played” units at lower prices. Microsoft Stores will also continue selling Xbox Certified Refurbished Consoles, with savings of up to US$100 compared with standard MSRP.

For price-sensitive buyers, the Xbox Series S remains the entry-level option in Microsoft’s console family. That position is important as the industry prepares for major releases including Grand Theft Auto VI, Gears of War: E-Day, Call of Duty: Modern Warfare 4, Assassin’s Creed Black Flag Resynced, Halo: Campaign Evolved and Madden NFL 27. The pricing change underlines how supply-chain costs are still affecting the gaming market years after the current console generation began.