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Xbox Series X and S Price Increase Imminent
Microsoft has confirmed another major price increase for Xbox Series X|S consoles, with new pricing set to take effect worldwide from August 1.
The company says the increase is being driven by rising manufacturing costs, particularly around memory and storage components. In a new blog post, Microsoft shared that it is raising prices by US$100 for 512GB Xbox models and US$150 for 1TB models, while the 2TB model is being phased out.
It is another difficult hardware moment for Xbox, following previous price adjustments in 2025. The new pricing also arrives as Microsoft continues reshaping its gaming business around Game Pass, cloud access, PC, and multiplatform releases.
New Prices Start From US$499.99
From August 1, the Xbox Series S 512GB will increase from US$399.99 to US$499.99. The Xbox Series S 1TB will rise from US$449.99 to US$599.99.
The Xbox Series X 1TB Digital Edition will move from US$599.99 to US$749.99, while the standard Xbox Series X 1TB will increase from US$649.99 to US$799.99. Microsoft is also discontinuing the 2TB Xbox Series X model.
Those are substantial increases across the board. The standard Xbox Series X now sits much closer to premium PC hardware pricing than the traditional console price range many players are used to.
Financing Options Aim to Soften the Impact
To reduce the immediate pressure on buyers, Microsoft is expanding affordability options around Xbox hardware by introducing buy now, pay later options and interest-free financing through Amazon, while also working with retailers on lower-priced, previously owned console programmes.
That may help some players spread out the cost, but it does not change the larger issue. Xbox hardware is becoming significantly more expensive at a time when the platform already faces tough competition from PlayStation, PC gaming, handheld PCs, and cloud-based access.
Xbox Hardware Strategy Faces a Tougher Question
The new pricing raises a bigger question about where Xbox hardware now fits in Microsoft’s wider gaming strategy.
On one hand, Xbox still needs console hardware to support its ecosystem, especially for players who prefer living room gaming. On the other, higher console prices make Game Pass, PC, cloud play, and multiplatform publishing look even more central to Microsoft’s long-term approach.
For now, Xbox Series X|S is not going away. However, with prices rising again and the 2TB model being phased out, Microsoft’s hardware pitch is becoming harder to separate from its broader services strategy.
