Microsoft has announced a worldwide price increase for Xbox consoles starting August 1, while also ending production of its 2TB model. The update comes as the gaming hardware market faces rising costs in memory and storage components.
New Xbox pricing
The revised pricing will affect several models across the lineup. The Xbox Series S 512GB will move from $399 to $499, while the 1TB version will rise from $449 to $599. On the higher end, the Xbox Series X 1TB Digital will increase from $599 to $750, and the disc version will go from $649 to $800.
Microsoft said the changes reflect broader pressure from sharply higher memory and console storage prices, which it says are now more than 2.5 times above previous levels. The company also noted that these costs could climb further by fall 2027.
The move follows a similar pricing shift from Apple, which recently adjusted hardware prices across parts of its lineup. Both companies point to the same market forces: surging demand for advanced chips and storage tied to the rapid expansion of AI infrastructure and data centers.
To help customers, Microsoft is expanding financing options and preparing lower-cost access programs for previously used consoles. Eligible buyers through Microsoft Stores and Amazon may also benefit from installment plans and promotional financing offers.
With major tech brands adjusting pricing in response to supply-chain pressure, the gaming market is entering a new phase where hardware value, access, and innovation are increasingly connected. This shift may shape how future consoles are priced and purchased.
