Microsoft raises Xbox console prices by up to $150 starting Aug 1, 2026

Microsoft announced that, effective 1 August 2026, the prices of its Xbox consoles will increase in the United States and other markets. The entry‑level Xbox Series S (512 GB) will rise from $399.99 to $499.99, the 1 TB version from $449.99 to $599.99, the Xbox Series X Digital from $599.99 to $749.99 and the standard Xbox Series X from $649.99 to $799.99. The 2 TB model will be discontinued.

The company attributes the hike to a more than 2.5‑fold increase in storage‑and‑memory component costs, driven by soaring demand for AI‑related data‑center chips. Microsoft said the same pressures led to a price increase in October 2025 and expects component costs to double again by late 2027. To mitigate the impact, Microsoft will expand buy‑now‑pay‑later options, offer interest‑free financing through select retailers and provide discounts on certified refurbished consoles.

The move follows similar price adjustments by competitors: Sony raised PlayStation 5 prices in April, Nintendo announced a $50 increase for the Switch 2, and Valve and Apple have also lifted prices on the Steam Deck and various devices.