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Buying a new console is becoming increasingly expensive. After recent PlayStation price hikes and the high-profile launch of the very expensive Steam Machine, it’s time for another move from Microsoft. The company has officially confirmed that starting in August prices for all major Xbox Series models will rise. The reason given is sharply rising production costs, especially memory and storage. What’s more, Microsoft doesn’t hide that if the component market situation doesn’t improve, further price increases may be only a matter of time.

Microsoft raises console prices and discontinues one Xbox model

Microsoft announced that starting August 1, 2026 a new global price list for Xbox consoles will take effect. The biggest changes concern models with larger storage. The Xbox Series S 512 GB will rise by $100, as will the base console versions, while models with a 1 TB drive will cost as much as $150 more than they do now. 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 lineup. Microsoft has not yet released the new prices for Europe, but similar increases can be expected in our market as well. For people 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 a disc drive is priced at $671, the Xbox Series S 512 GB costs $380, and the 1 TB version is listed at $428. After the new prices take effect all of these amounts will rise noticeably. Microsoft is therefore encouraging interested players to buy before the start of August. This is especially relevant for those 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 purchase new hardware just as prices increase again. For the console market this marks another stage in increasingly expensive consumer electronics. A few years ago similar price hikes after a device's launch were practically unheard of.

Component crisis hits consoles and Microsoft doesn't rule out more price hikes

According to Microsoft, the main reason for rising prices is the severe crisis in the electronic components market. The company admits that the prices of memory and storage media have already increased by more than 2.5 times, and could double again by the end of 2027. That's why the manufacturer decided to apply another price adjustment. Interestingly, since the launch of the Xbox Series in November 2020, this is already the third price increase for those 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 notes that the situation facing console makers is significantly different from the smartphone or personal computer markets. Consoles are often sold with minimal margins or even below production cost, because companies count on later profits from game sales and subscription services. When component costs rise sharply, sustaining such a 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. Add to that the recent launch of the extremely expensive Steam Machine, whose price also sparked a lot of discussion. Everything therefore suggests that the entire electronics market is currently going through an exceptionally difficult period. Gamers should prepare for buying a new console to become increasingly expensive. Moreover, Microsoft openly admits that if the components crisis deepens, current price increases may not be the last. That means the coming months could bring further price changes not only for Xbox but also for other gaming devices.

Microsoft has officially announced another price increase for Xbox consoles, which will take effect on August 1, 2026. The reason is rising memory and other component costs, and the company does not rule out that if market conditions do not improve, gamers could see further price increases in the future.

source: flatpanelshd