Microsoft hikes Xbox console prices amid component cost surge

Microsoft announced a third increase in Xbox console prices, taking effect on 1 August. Prices for the 512 GB and 1 TB models will rise by $100 and $150 respectively, and the 2 TB variant has been discontinued. The company attributes the hikes to a prolonged component shortage and a 350 % jump in memory and SSD chip costs.

To soften the impact, Microsoft is introducing a Buy‑Now‑Pay‑Later scheme through its store and partnering retailers, offering interest‑free financing for up to 12 months. The Slovenian report adds that the Xbox Series X 1 TB will cost $800 (up from $650) and the digital‑only version will be $50 cheaper, while the Series S 512 GB and 1 TB models will be priced at $500 and $600 respectively. These changes follow earlier price adjustments in October 2025 and May 2026.