Microsoft is increasing Xbox console prices by $100-$150 starting August 1st, citing a component crisis and memory/storage price increases of over 2.5x.
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<p class="wp-block-paragraph"><br>Microsoft is increasing the prices of Xbox consoles again. Starting August 1st, 512GB models will be $100 more expensive, while 1TB models will be $150 more expensive. This means that the Xbox Series S will start at $499.99, the Xbox Series X without a disc drive will start at $749.99, and the Series X with a disc drive will start at $799.99. Microsoft also says it will be "sunsetting" its 2TB Xbox Series X.</p>
<p class="wp-block-paragraph">Microsoft last raised prices in October by $20 to $70 and says it had hoped to avoid further hikes. "Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027," …</p>
<p><a href="https://www.theverge.com/games/957042/xbox-price-increase-memory-shortage">Read the full story at The Verge.</a></p>
# Xbox prices spike another $100 or more
Source: [https://www.theverge.com/games/957042/xbox-price-increase-memory-shortage](https://www.theverge.com/games/957042/xbox-price-increase-memory-shortage)
[](https://www.theverge.com/authors/jay-peters)
Jay Peters
is a senior reporter covering technology, gaming, and more\. He joined The Verge in 2019 after nearly two years at Techmeme\.
Microsoft is increasing the prices of Xbox consoles again\. Starting August 1st, 512GB models will be $100 more expensive, while 1TB models will be $150 more expensive\. This means that the Xbox Series S will start at $499\.99, the Xbox Series X without a disc drive will start at $749\.99, and the Series X with a disc drive will start at $799\.99\. Microsoft also says it will be “sunsetting” its 2TB Xbox Series X\.
“Last October, we increased XBOX console price by $20\-$70 in the U\.S\.,”[Microsoft says in a blog post](https://news.xbox.com/en-us/2026/06/25/xbox-console-price-update/?ocid=Platform_soc_omc_xbo_tw_Text_lrn_6.25.2)\. “We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options\. Unfortunately, console storage and memory prices have increased by more than 2\.5x and we expect another doubling by the fall of 2027\. The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles\. Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make\.”
The company is also introducing new programs to try and make new Xboxes more affordable, including a buy now, pay later option, interest\-free financing as an option if you buy on Amazon, and plans with retail partners to make “new programs to provide previously played consoles at lower prices\.”
Microsoft initially launched the Xbox Series S[at $299](https://www.theverge.com/2020/9/8/21426934/microsoft-xbox-series-s-announcement-price)and the Series X[at $499](https://www.theverge.com/2020/9/9/21428714/xbox-series-x-price-release-date-preorder-all-access)in November 2020\. But in recent years, the company has had to raise[console prices](https://www.theverge.com/2023/6/21/23768400/microsoft-xbox-series-x-xbox-game-pass-price-increase)[multiple](https://www.theverge.com/news/659430/microsoft-xbox-console-controller-game-price-increases-worldwide)[times](https://www.theverge.com/news/782079/microsoft-xbox-console-price-increase-us)due to things like the component crisis — a crisis that is forcing basically every technology company to raise prices,[including Apple](https://www.theverge.com/tech/952162/apple-price-increase-ram-shortage)\.
The Xbox price hikes are coming at a particularly difficult time for Xbox as a whole\. New Xbox boss Asha Sharma recently warned employees of[an impending Xbox “reset” as it prepares for layoffs](https://www.theverge.com/games/948142/microsoft-xbox-layoffs-reset-asha-sharma)\.
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- Jay Peters
Microsoft is raising Xbox prices in Europe and the UK by up to €200 or £170, citing AI-driven demand for memory and storage driving up component costs. The increases affect multiple Series X and Series S models, with the 512GB Series S jumping over 43%.
Microsoft announced price increases for all Xbox models due to memory shortages, but current Prime Day deals offer discounts on the Xbox Series X and Series S before the hikes take effect.
Consumer electronics prices are rising again due to a memory shortage driven by AI data center demand, affecting products like MacBooks, iPads, Xbox consoles, and PlayStation 5 Pro.
Sony and Nintendo are increasing prices for the PS5 and Switch 2 due to surging memory costs driven by AI infrastructure demand, which is constraining supply for consumer electronics.
Microsoft is rethinking its Xbox console hardware business models due to rising memory and storage costs, exploring partnerships, flexible pricing, and potentially ad-supported options to keep consoles affordable.