The latest Xbox price increase is the one nobody wanted, and this time it stings. On June 25, 2026, Microsoft confirmed that starting August 1, Xbox console prices are going up worldwide, again. The 512GB models jump by $100, the 1TB models by $150, and the much loved 2TB Series X is being discontinued entirely. If you have been putting off buying an Xbox, you now have a hard deadline, because after August 1 the same box will simply cost more.
This is not a small bump either. It is the third Xbox price hike in just over a year, and it pushes the flagship Xbox Series X to a price that would have sounded absurd at launch. Let me break down the new numbers, the real reason behind them, and the smartest move you can make before the deadline.
The new Xbox prices in full
Here is exactly what you will pay once the increase lands on August 1, 2026.
| Console | New price |
|---|---|
| Xbox Series S (512GB) | $499.99 |
| Xbox Series S (1TB) | $599.99 |
| Xbox Series X Digital (1TB) | $749.99 |
| Xbox Series X (1TB, disc drive) | $799.99 |
| Xbox Series X (2TB) | Discontinued |
The headline that hurts most: the Xbox Series X now tops out at $799.99. When that console launched in 2020 it cost $499.99, so this is roughly a 60 percent increase over six years on hardware that has not changed in any meaningful way. The era of consoles quietly getting cheaper as they age is officially over.
Why Xbox prices keep going up
Microsoft is blaming a global components crisis, and for once the excuse is grounded in something real. In its announcement, the company said console storage and memory prices have increased by more than 2.5 times, and it expects them to roughly double again by the fall of 2027. The villain here is the AI boom. Chipmakers are buying up memory at historic rates to feed AI data centers, which has squeezed supply and driven prices up for everyone who needs memory chips, including game consoles.
There is a twist that makes consoles especially vulnerable. Unlike phones, laptops, and speakers, consoles are usually sold at a loss or near cost, with the company making money later on games and subscriptions. So when component prices spike, there is no fat margin to absorb the hit, and the cost lands straight on the buyer.
You are not imagining it, this keeps happening
If this feels like the millionth Xbox price change, that is because it nearly is. Microsoft raised U.S. prices by $20 to $70 just last October, and now this much larger global hike arrives less than a year later. The same components crisis is rippling across the whole industry. Apple recently raised MacBook and iPad prices for the same reason, and Sony has pushed the PS5 up too, with the standard PS5 now around $649.99 and the PS5 Pro at $899.99. No major hardware maker is safe from the memory squeeze.
What gamers are actually saying
Here is the part the press release skips. Scroll through r/xbox and the 800 plus comments on coverage of the news, and the mood is not sad, it is furious. The most repeated argument is about value: gamers feel they are being asked to pay flagship money for a three year old console with no upgrade, no new features, and a shrinking library of exclusives. A loud chunk of the community is openly saying this is the moment they switch to PC or jump to a PS5 instead, while others are rushing to buy now before August 1. When Sony raised PS5 prices, that exact panic buying broke sales records, so do not be surprised if Xbox sees one final rush.
What you can do about it
If you want an Xbox, the move is simple: buy before August 1, 2026, and prioritize a 2TB Series X while they still exist, since that model is going away for good. If the price is out of reach, Microsoft is leaning on new buy now, pay later and zero interest financing options it announced alongside the hike. And if you were only loosely interested, this is a fair moment to compare the value of a gaming PC or a PS5 before committing. For more on how this same components crisis is hitting Apple gear, see our breakdown of the Apple price increase.
You can also read the official numbers straight from the Xbox Wire announcement and the wider context on Reuters.
Xbox price increase FAQ
When does the Xbox price increase start?
August 1, 2026, worldwide. Prices stay at current levels until then, so buying before the deadline saves you money.
How much are Xbox consoles going up?
512GB models rise by $100 and 1TB models by $150. The Series X disc model hits $799.99 and the 2TB model is discontinued.
Why is Microsoft raising Xbox prices?
A global memory and storage components crisis, worsened by AI demand, has more than doubled component costs, and consoles have no margin to absorb it.
The bottom line
The Xbox price increase is a gut punch for gamers, and a sign of where the whole industry is heading as AI gobbles up the world’s memory chips. If you want in, buy before August 1. If you are on the fence, this is a perfectly good reason to pause and weigh your options, because $799.99 for a console is a very different decision than $499.99 was.
Your turn: are you buying or walking away?
Now be honest in the comments, does this price hike push you to finally buy an Xbox before August 1, or does it push you straight to PC or PlayStation instead? Do not just scroll past, drop your verdict below. If you already own a Series X, was it worth it, and would you buy again at $799.99? And if you are switching platforms over this, tell us where you are going and why, because a lot of people reading this are trying to make the exact same call right now.
