Xbox console owners are facing another financial hurdle. For the third time in just over a year, Microsoft is raising the price of its hardware. Starting August 1, several Xbox models will see a global price hike of at least $100.
According to an official update on Xbox Wire, 512 GB models will jump by $100, while 1 TB versions will see a steeper $150 increase in the United States. Additionally, Microsoft has confirmed the discontinuation of the 2 TB Xbox Series X.
While official retail pricing has yet to be finalized, the projected costs for these consoles are as follows:
- Xbox Series S (512 GB): $499.99 (previously $399.99)
- Xbox Series S (1 TB): $599.99 (previously $449.99)
- Xbox Series X Digital (1 TB): $749.99 (previously $599.99)
- Xbox Series X (1 TB): $799.99 (previously $649.99)
The company also has a limited-edition 25th-anniversary 1 TB Series X launching this November. While pricing for this collector’s item remains undisclosed, it is expected to carry an even higher premium.
This latest adjustment follows similar price increases implemented in May and October of last year. Microsoft attributes the decision to the ongoing global component crisis, noting that the situation is likely to deteriorate further by late 2027. “Console storage and memory costs have surged by over 2.5x,” the company stated. “Unlike other consumer electronics that are often sold at a profit, consoles are typically priced below their manufacturing cost, making the industry shift particularly difficult to absorb.”
Microsoft is not alone in these measures; competitors like Sony and Nintendo have also raised prices for the PlayStation 5 and the Switch 2, respectively. Meanwhile, Valve has significantly increased the price of the Steam Deck, with its upcoming Steam Machine retailing for over $1,000 due to these same macroeconomic pressures.
This news adds to a difficult period for the Xbox division, which has recently made headlines regarding major internal restructuring. Under the leadership of CEO Asha Sharma and Chief Content Officer Matt Booty, reports suggest the company is preparing for significant layoffs, with several first-party studios—including Compulsion Games, Double Fine, and Ninja Theory—reportedly facing an uncertain future.
