Xbox is continuing its efforts to evaporate the last few drops of goodwill it squeezed out of an expensive and self-congratulatory Summer Game Fest showing, following up the recent news of mass studio closures and layoffs with a third price increase on its console hardware.
Starting August 1, 2026, the Xbox Series X will see a worldwide price increase of USD $150, while the Xbox Series S will go up by USD $100 for the 512GB model and USD $150 for the 1TB model. The 2TB variant of the Xbox Series X is being discontinued entirely.
The company cites, well, the same reasons that we’re seeing for sharp price increases in just about every sector of consumer electronics right now – the exponential rise of storage and memory component costs fueled by the rapid expansion of AI data centres across the globe. And for the Microsoft-owned brand, as is the case with just about every brand currently suffering under these skyrocketing prices and material shortages, the call is coming from inside the house.
The statement from Xbox reads:
“Effective August 1, 2026, we will be updating prices worldwide. The price of XBOX consoles will increase by US$100 for 512 GB models and US$150 for 1 TB models. We will also be sunsetting our 2 TB model.
“Last October, we increased XBOX console price by $20-$70 in the U.S. 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 company also makes mention of the unique position of the console hardware business, something that’s been in discussion with the recent reveal of the Steam Machine’s launch pricing, saying, “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.”
But don’t worry! Xbox also highlighted a series of measures and offers it’s implemented to help you purchase a machine in spire of the exorbitant costs associated with doing so. This includes indebting yourself to a Buy Now, Pay Later (BNPL) scheme or “interest free” financing, or… buying one second-hand. Got it!
We’ll be sure to update this story once more specific, Australia and New Zealand regional pricing comes through.