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Buying a new console is becoming an increasingly expensive purchase. After recent price hikes for the PlayStation and the high-profile launch of the very expensive Steam Machine, it is now Microsoft’s turn to act. The company has officially confirmed that, from August, prices for all the main Xbox Series models will increase. The reason given is sharply rising manufacturing costs, particularly for memory and storage. Moreover, Microsoft admits that if the market for components does not improve, further price increases may be only a matter of time.
Microsoft raises console prices and withdraws one Xbox model
Microsoft has announced that from 1 August 2026 a new price list for Xbox consoles will come into effect worldwide. The biggest changes affect models with larger storage. The Xbox Series S 512 GB will increase by $100, as will the base console versions, while models with a 1 TB drive will cost as much as $150 more than at present. At the same time the company confirmed it will end sales of the version equipped with 2 TB of storage, which will be removed from the line-up. Microsoft has not yet provided the new prices for Europe, but similar increases can be expected in our market. For those planning to buy a new console this means a last chance to take advantage of current prices. According to the current price list the Xbox Series X Digital 1 TB costs $598, the standard Xbox Series X with disc drive is priced at $671, the Xbox Series S 512 GB costs $380, and the 1 TB version is priced at $428. When the new prices take effect all these amounts will rise significantly. Microsoft therefore encourages interested players to buy before the start of August. This particularly applies to those planning to move to the new generation before the release of GTA 6, which will require an Xbox Series or PlayStation 5 console. Older models such as Xbox One or PlayStation 4 will not support that title. That means some players may find themselves forced to buy new hardware precisely at the time of further price rises. 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 rises
According to Microsoft, the main reason for the price increases is a sharp crisis in the electronic components market. The company admits that memory and storage prices have already risen 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 rise for these consoles. As a result, the base Xbox Series S 512 GB will cost as much as the Xbox Series X did on the day of 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 rely 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 situation, having raised prices for the PS5 and PS5 Pro as early as April 2026. Added to that is the recent launch of the extremely expensive Steam Machine, whose price also sparked considerable debate. Everything therefore suggests that the entire electronics market is going through an exceptionally difficult period. Gamers should prepare for buying a new console to become increasingly costly. 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 also for other gaming hardware.
Microsoft has officially announced another price increase 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 market conditions do not improve, players may see further price increases in future.
source: flatpanelshd
