xbox price hike 2026: how the increase will hit gamers

At a glance:

• XBOX Series S 512GB rises $100 to $499; 1TB rises $150 to $599.
• XBOX Series X 1TB Digital Edition up $150 to $749; 1TB up $150 to $799.
• 2TB model will be discontinued; price hikes driven by 2.5x rise in memory/storage costs.

Pricing details

Microsoft announced on June 2024 that it will raise the prices of XBOX consoles worldwide on August 1, 2026. The move affects the Series S and Series X line‑ups, with the 512GB models gaining $100 and the 1TB models gaining $150. In addition, the 2TB model will be sunset.

Here are the new prices in the U.S. starting at the beginning of August:

• Xbox Series S (512 GB) – Old $399, New $499
• Xbox Series S (1 TB) – Old $449, New $599
• Xbox Series X (1 TB Digital Edition) – Old $599, New $749
• Xbox Series X (1 TB) – Old $649, New $799

Why the hike?

Microsoft attributes the need to raise prices to the ongoing memory and storage shortages that have surged during the component crisis. The company says “console storage and memory prices have increased by more than 2.5×,” and it expects another doubling by the fall of 2027. If that trajectory holds, a further price increase next year would not be surprising.

This marks the third time Microsoft has raised the price of the XBOX since 2025. The first hike came in May 2025, followed by a second in October 2025.

Market context and implications

The price shock mirrors the situation with Valve’s Steam Machine, which also saw a steep price jump amid component shortages. Nintendo and Sony have similarly incrementally raised their hardware prices, so Microsoft’s move is part of a broader industry trend. The discontinuation of the 2TB model reduces options for high‑capacity buyers but may help the company manage supply constraints.

Looking ahead, the component shortage is projected to persist, potentially prompting another price adjustment in 2027. Consumers and resellers will need to weigh the higher upfront cost against the benefits of larger storage and the availability of future upgrades.