Microsoft announced that it will be raising prices for Xbox consoles worldwide. According to the company’s announcement, the new pricing will take effect on August 1, 2026.
Consequently, the price of Xbox models with 512 GB of storage capacity will increase by $100, while the price of 1 TB models will increase by $150. Microsoft also announced that it will discontinue the 2 TB Xbox model.
The company cited rising costs of storage and memory components used in console production as the primary reason for the price increase. Microsoft noted that it had raised Xbox console prices in the U.S. by between $20 and $70 last October and stated that it had been working with suppliers for months on various options to avoid another price hike.
In its statement, Microsoft said that console storage and memory prices have risen more than 2.5-fold and that it expects these costs to nearly double again by the fall of 2027.
The company stressed that the current component crisis is affecting the entire consumer electronics sector, but that this situation is placing particularly heavy pressure on gaming consoles. According to Microsoft, the reason for this is that, unlike phones, computers, speakers, and similar devices, consoles are generally sold below production cost rather than at a profit.
Microsoft also unveiled some accessibility programs to mitigate the impact of price increases on gamers. The company announced that “buy now, pay later” options have been expanded for eligible Xbox hardware purchases through the Microsoft Store. It also noted that 0% interest financing for up to 12 months will be available for eligible Xbox hardware purchases made through Amazon.
In addition, Microsoft announced that it is working with retail partners on new programs for lower-priced used Xbox consoles. Under this initiative, gamers who want to upgrade their console or no longer use it will be able to trade in their devices to participating retailers in exchange for cash or store credit. These consoles will then be resold at more affordable prices.
