Microsoft will update the prices of Xbox game consoles worldwide starting August 1, 2026, significantly increasing prices for popular models. In addition, the company will review its current lineup of devices and abandon one of the current console modifications.
Microsoft will update the prices of Xbox game consoles worldwide starting August 1, 2026, significantly increasing prices for popular models. In addition, the company will review its current lineup of devices and abandon one of the current console modifications.
This was reported on the official Xbox blog. According to the published data, the price of models with 512 GB of memory will increase by $100, and for versions with 1 TB — by $150. At the same time, Microsoft is completely discontinuing the release of the Xbox modification with a 2 TB drive. The manufacturer calls the unprecedented increase in the cost of components the main reason for such unpopular steps.
In particular, prices for storage and RAM for consoles have increased by more than 2.5 times, and the company predicts that they may double again by the fall of 2027. The situation is complicated by the fact that, unlike smartphones and laptops, game consoles are usually sold at a price close to or even below cost.
This isn’t the first time gaming hardware has seen a price hike. Microsoft first raised the prices of the Xbox Series X and Series S in May 2025, and then in October of last year (when the increase in the US was from $20 to $70). After today’s adjustment, the standard version of the Xbox Series X will sell for $800, which is $300 more than its starting price at the time of its release in 2020.
The entire electronics market is facing similar challenges. Apple has previously raised prices for most of its gadgets (except the iPhone), explaining this by the high demand for SSDs and RAM, which are being bought up en masse by developers of artificial intelligence systems. Microsoft’s competitors are also reviewing their prices: Sony has repeatedly increased the cost of the PlayStation, and Nintendo plans to set the price tag for the upcoming Switch 2 at $500. Valve Corp. also announced that its Steam Machine will cost more than $1,000 due to the inability to maintain the initially planned lower price.
To cushion the blow for consumers, Microsoft has announced support programs. Buyers will be offered interest-free financing for up to 12 months on Amazon and the option «Buy Now, Pay Later» in branded Microsoft Stores. The corporation is also launching a trade-in program: users will be able to hand in old consoles in exchange for cash or gift certificates, and refurbished (used) devices will be sold at a reduced price through partner retail chains.
The current components crisis is creating uncertainty around the development of the next-generation Xbox console, currently known by the working name Project Helix .
«We’re working very hard to reimagine everything we can about Helix, the console we committed to bringing to market,» Xbox chief strategist Matthew Ball said in an interview at The Game Business Live, an industry conference.
Microsoft’s gaming division has lagged behind Sony and Nintendo in hardware sales in recent years. In February 2026, Asha Sharma took over as CEO of Microsoft Gaming. She has already initiated a major reorganization and layoffs to streamline the business. Earlier this month, Sharma warned in a letter to employees that the company’s memory chip spending could increase fivefold by the 2027 holiday season compared to 2024.
