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Buying a new console is becoming an ever bigger expense. After recent PlayStation price hikes and the high-profile launch of the very expensive Steam Machine, it's Microsoft’s turn. The company has officially confirmed that from August prices for all major Xbox Series models will increase. The reason is said to be sharply rising production costs, especially memory and storage. What's more, Microsoft has made no secret that if the situation on the components market does not improve, further price hikes may be only a matter of time.
Microsoft raises console prices and pulls one Xbox model
Microsoft has announced that a new price list for Xbox consoles will take effect worldwide from 1 August 2026. The biggest changes affect models with larger storage. The Xbox Series S 512 GB will increase by $100, similar to the base console versions, while the 1 TB models will cost as much as $150 more than now. At the same time the company confirmed it will end sales of the 2 TB version, which will disappear from the range. Microsoft has not yet released new prices for Europe, but similar hikes can be expected in our market. For people planning to buy a new console this is the last chance to take advantage of current prices. Under the current price list the Xbox Series X Digital 1 TB costs $598, the standard Xbox Series X with a disc drive is priced at $671, the Xbox Series S 512 GB costs $380, and the 1 TB version is listed at $428. Once the new prices take effect all those amounts will rise noticeably. Microsoft is therefore encouraging interested gamers to buy before the start of August. This is particularly relevant for people planning to upgrade to the new generation ahead of the release of GTA 6, which will require an Xbox Series or PlayStation 5 console. Older models, such as the Xbox One or PlayStation 4, will not support that title. That means some players may face the need to buy new hardware just as prices increase again. For the console market this represents another stage in increasingly expensive consumer electronics. A few years ago similar post-launch price rises were virtually unheard of.
Component crisis hits consoles and Microsoft does not rule out further price increases
According to Microsoft, the main reason for the price rises is a severe crisis in the electronic components market. The company admits that prices for memory and storage media have already increased by more than 2.5 times, and could double again by the end of 2027. That is why the manufacturer decided to make another price adjustment. Interestingly, since the launch of the Xbox Series in November 2020 this is already the third price hike for these consoles. As a result, the base Xbox Series S 512 GB will cost as much as the Xbox Series X did on its debut six years earlier. Microsoft points out that the situation for console makers is significantly different from the smartphone or personal computer markets. Consoles are often sold with minimal margins or even below production costs, because companies count on later profits from game sales and subscription services. When component costs surge, maintaining that business model becomes increasingly difficult. Sony has found itself in a similar position, raising prices for the PS5 and PS5 Pro back in April 2026. Added to that is the recent launch of the very expensive Steam Machine, which also sparked a lot of debate. Everything suggests the entire consumer electronics market is going through an especially tough period. Gamers should be prepared that buying a new console will become a bigger expense. Moreover, Microsoft openly admits that if the component crisis deepens, the current price rises may not be the last. This means the coming months could bring further price changes not only for Xbox but for other gaming hardware as well.
Microsoft has officially announced another price rise for Xbox consoles, which will take effect on 1 August 2026. The reason is rising memory and other component costs, and the company does not rule out that if the market situation does not improve, gamers may see further price increases in the future.
source: flatpanelshd
